Question

A family originally bought a home for $484,670. Now, a few years later, the home is worth $727,005. What was the percent of increase in its value?

Answer 1

To find the percent increase in the home's value, subtract the original price from the current price to get the increase in value, divide by the original price, and multiply by 100. The increase is 50%.

Step-by-step explanation:

The student asked about calculating the percent of increase in the value of a home originally purchased for $484,670 which is now worth $727,005.

To determine this, we use the formula for percentage increase:

Percentage Increase = (Increase in Value / Original Value) × 100

In this case, the increase in value is $727,005 - $484,670 = $242,335.

Now plug this into the formula:

Percentage Increase = ($242,335 / $484,670) × 100

Percentage Increase = (0.5) × 100

Percentage Increase = 50%

The percent of increase in the home's value is 50%.