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?

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Answer 1 · 2017-06-07T21:52:48

See a solution process below:

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.