In a certain neighborhood, property values are 4 1/2% more this year than they were last year. If a family bought a house last year worth $120,000, what is the

Question

what is the value of the house this year ?

 

F. $120,450

G. $125,400

H. $140,000

J.  $480,000

Show how you did it please

Answer 1

Hello,

The answer is G, $125,400.

Take the original $120,000 and multiply by 4 1/2% (120,000 x .045 which is 4 1/2 percent as a decimal.)

The answer to that is $5,400 which represents the increase in value since the purchase a year earlier.

Add this $5,400 to the original $120,000 and this represents the current value of $125,400.

Hope this helps!