Question

According to a certain central bank from 2000 to 2016 the average price of a new home in a certain region increased by 77% to $476 thousand. What was the average price of a new home in 2000?

Answer 1

The average price of a new home in 2000 was $ 268,927 (rounding to the next dollar)

Explanation:

Let's find out the average price of a new home in 2000, this way:

x = Average price of a new home in 2000

Increase rate = 77% = 0.77

476,000 = Average price of a new home in 2016

2. What was the average price of a new home in 2000?

x + 0.77x = 476,000

1.77x = 476,000

x = 476,000/1.77

x = 268,927 (rounding to the next dollar)