Question

metro atlanta home prices are rising rapidly, and much of its a soaring demand from deep-pocketed investors,as reported in the AJC March 21st of this year. In March2022, the median sale price of a home in the Metro area was $401,500. Before the the pandemic hit, in january2020, the median sale price was $279,000 Find the rate increase of the average cost of a home in Atlanta from january2020 before the pandemic hit Atlanta to the present

Answer 1

We are asked to determine the rate of increase in the value of a home,

We need to have into account that at the beginning of the considered period the cost was 279000 and after two years the cost is 401500, therefore, we can use the following formula:

`r=(\Delta C)/(\Delta t)`

Where:

`\begin{gathered} \Delta C=\text{ difference in cost} \\ \Delta t=\text{ difference in time} \end{gathered}`

Now, we substitute the values:

`r=(401500-279000)/(2)`

Solving the operations:

`r=61250`

Therefore, the rate is an increase of $61250 per year.