A house with an original value of $270,000 increased in value to $330,000 in 5 years. What is the ratio of the increase in value to the original value of the house?

Question

A house with an original value of $270,000 increased in value to $330,000 in 5 years. What is the ratio of the increase in value to the original value of the house?

Answer 1

If an object increases in value from a to b, then the increase is b -- a.

Say a baseball card is worth $10 today and increases to a value of $15. The increase is 15 - 10 = $5.

So for this problem the increase in value is 330,000 - 270,000 = 60000.

The original value is 270000.

The ratio of the increase in value to the original value is:

60000:270000

Written as a fraction:

60000/270000 = 6/27 = 2/9.