increase rate of 9%?

Question

in a certain city, the cost of housing is increased at a rate of 9% annually, this year the typical house cost 454,000 how much will the typical house cost in 4 years?

Answer 1

Hi Brenda,

 

increases by 9% means this mathematicaly

 

(what you have - what you end up with)/what you have = 0.09

 

To make this decimal number 9% you just multiply it by 100 (0.09*100)

 

So what is a 9% increase from $454,000?

 

$454,000*0.09 = $40,860 This is just by how much it increased at the end of 1 year.

 

To get the value at the end of the year you just simply add the two $454,000 + $40,860 = $494,860

 

This is just at the end of 1 year. Now you take this and do with it what I just did with $454,000.

 

Do the same twice more, but you should probably see why you need not go through the repetition. I just did it that way so you see how the shortened formula came about.

 I hope this helps.