Question

According to the Census Bureau, in October 2016, the average house price in the United States was $27,358. 8 years earlier, the average price was $21,808. What was the annual increase in the price of the average house sold

Answer 1

Annual increase in price=3.3%

Step-by-step explanation:

Using the cumulative average growth formula, we can compute the average annual increase as follows;

Average annual increase =( Recent price/Initial price)^1/(n-1)

Initial price =$27,358. 8

Recent price = $21,808

n=8

Average annual increase= (27,358. 8/21,808)^(1/(8-1))=3.3%

Annual increase in price