Answer :
Answer:
The average price of a house last year was = $124,423.96
Step-by-step explanation:
Let the average price of houses in Tennessee last year in dollars be = [tex]x[/tex]
This year the increase percentage in average price was = 8.5%
The change in average price can be calculated in dollars as:
⇒ [tex]8.5\%\ of\ \textrm{Last year average price}[/tex]
⇒ [tex]0.085\times x[/tex]
⇒ [tex]0.085x[/tex]
New increased average price in dollars can be calculated as:
[tex]\textrm{Last year average price + Increase in average price}[/tex]
⇒ [tex]x+0.085x[/tex]
⇒ [tex]1.085x[/tex]
The new increased average price actually is = $135,000
So, we have,
[tex]1.085x=135000[/tex]
Dividing both sides by 1.085
[tex]\frac{1.085x}{1.085}=\frac{135000}{1.085}[/tex]
∴ [tex]x=124423.96[/tex]
Thus average price of a house last year was = $124,423.96