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

Answer:

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 + $p\times \frac{35}{100}$

648000 = p + 0.35p

648000 = (1.35)p

p = $\frac{648000}{1.35}$

p = $480000

Therefore, purchase rate of the house is $480000.