Question

In 1980, the average price of a home in Brainerd County was $100,000. By 1986 the average price of a home was $112,000. What is the rate of change?

Answer 1

See a solution process below:

Explanation:

The formula for calculating the percent change in a value between two points in time is:

`p = (N - O)/O * 100`

Where:

`p` is the percent change - what we are solving for in this problem.

`N` is the New Value - $112 thousand in this problem.

`O` is the Old Value - $100 thousand in this problem.

Substituting and solving for `p` gives:

`p = (112 - 100)/100 * 100`

`p = 12/100 * 100`

`p = 12/color(red)(cancel(color(black)(100))) * color(red)(cancel(color(black)(100)))`

`p = 12`

Between 1980 and 1986 there was a 12% increase in the average price of a home.