Question

A house increase value by 32% since it was purchased. If the current value is $495,000, what is the value when it was purchased?

Answer 1

$375,000.

Step-by-step explanation:

Let the value of the house when it was purchased = x

If its value increases by 32%, then its current value will be:

`x+(32\%\text{ of x)}`

Since we are told that the current value is $495,000, then:

`x+(32\%\text{ of x)=495,000}`

We solve for x.

`\begin{gathered} x+0.32x=495,000 \\ 1.32x=495,000 \\ x=(495,000)/(1.32) \\ x=\$375,000 \end{gathered}`

The value of the house when it was purchased was $375,000.