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Your answer is incorrect. A house has increased in value by 24% since it was purchased. If the current value is $527,000, what was the value when it was purchased? $102.000

User Source
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1 Answer

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We are given the final value of the house after its price was increased by 24%

We must go back to the original price knowing the final price. It's called inverse percentage calculation

To calculate the 24% of the value, we multiply by 24 and divide by 100, that is

value * 24 / 100 = 0.24 * value

The original price of the house is 100%, the increase is 24%, thus the final value of the house is 100% + 24% = 124%

What we were given as data is 124% of the original price of the house

As we did above, to compute 124% of a value, we multiply by 124 and divide by 100. Being P the original price of the house, then the final value is

P * 124% = P * 124 / 100 = 1.24 * P

We know this value:

1.24 * P = $527,000

Divide by 1.24 both sides of the equation

P = $527,000 / 1.24 = $425,000

The original price of the house was $425,000

Let's check it out:

Original price: $425.000

Increase: 0.24 * 425,000 = $102,000

Final Price: $425,000 + $102,000 = $527,000

The condition is met and the question is answered

User Jonho
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