Question

James bought a house, the value of the house decreased by 20% in 2011. For three consecutive years the value of the house increased. The value of the house at the end of 2014 was 6.48% more than the paid for the house . Calculate the percentage increase in value of the house for each of the three of the three consecutive years .

Answer 1

If the value of the house decreased by 20% in 2011, that means the value of the house at the end of 2011 was 100 - 20 = 80% of the original value.

If at the end of 2014, the value of the house was 6.48% more than the price he paid for it, that means the value of the house at the end of 2014 was 106.48% of the price he paid for it.

Since the value of the house has increased three consecutive years, we can assume that the value of the house at the end of 2012 and 2013 were between 80% and 106.48% of the price he paid for it.

We know that the value of the house at the end of 2014 was 106.48% of the price he paid for it.

So, the percentage increase in value of the house for each of the three consecutive years is (106.48-80)/3 = 26.48/3 = 8.83%.

so The percentage increase in value of the house for each of the three consecutive years is 8.83%

Explanation: