Math Snap
PROBLEM
A house increased by to a current value of $129,000. What was its original purchase value?
STEP 1
Assumptions1. The current value of the house is $129,000. The house has increased in value by29%
3. The increase in value is calculated as a percentage of the original value
STEP 2
First, we need to understand that the current value of the house is129% of the original value. This is because the house has increased in value by29%, so the current value is the original value plus29% of the original value.
STEP 3
We can simplify the above equation by factoring out the original value.
STEP 4
Now, we can rewrite the equation to solve for the original value.
STEP 5
Now, plug in the given values for the current value and increase percentage to calculate the original value.
Original\, value = \($\)129,000 / (1 +29\%)
STEP 6
Convert the percentage to a decimal value.
Original\, value = \($\)129,000 / (1 +0.29)
STEP 7
Calculate the denominator.
Original\, value = \($\)129,000 /1.29
SOLUTION
Calculate the original value.
Original\, value = \($\)129,000 /1.29 = \($\)100,000The original value of the house when it was purchased was $100,000.