Question

Clare bought her first home for $135,000 in 2001. In 2006, the value of real estate in her area had increased by 18%. Based on this, how much was Clare's home worth in 2006?

Answer 1

To find the value of Clare's home in 2006 after an 18% increase, we can use the following formula:

Value in 2006 = Value in 2001 x (1 + Percent Increase)

Plugging in the values given in the problem, we get:

Value in 2006 = $135,000 x (1 + 0.18)

Simplifying this expression, we get:

Value in 2006 = $135,000 x 1.18

Value in 2006 = $159,300

Therefore, Clare's home was worth $159,300 in 2006 after an 18% increase in value from its original price of $135,000 in 2001.