Question

A house has increased in value by 35% since it was purchased. If the current value is 648,000, what was the value when it was purchased?

Answer 1

The original value of the house when it was purchased was $480,000, calculated by dividing the current value of $648,000 by 1.35, which represents a 35% increase in value.

Step-by-step explanation:

To determine the original purchase price of the house that has increased in value by 35% and is now worth $648,000, we can set up the original price as 100% and the increase as 35%, making the current price 135% of the original. By defining the original price as 'x', the current price is 1.35 times 'x'.

We can represent this relationship with the equation: 1.35x = $648,000.

To find the original value 'x', divide the current value by 1.35:

x = $648,000 / 1.35

x = $480,000

Therefore, the original value of the house when it was purchased was $480,000.

Answer 2

Purchase rate of the house is $480000.

Step-by-step explanation:

Let the purchase rate of the house = $p

Current value of the house = $648000

If the current rate of the house has increased by 35% of the purchase rate,

Current rate = Purchase rate + 35% of the purchase rate

648000 = p + (35% of p)

648000 = p +
`p* (35)/(100)`

648000 = p + 0.35p

648000 = (1.35)p

p =
`(648000)/(1.35)`

p = $480000

Therefore, purchase rate of the house is $480000.