Given:
The value of a house is 600,000 in 2005.
It increased by 25% in 2006 and 10% in 2007 but dropped by 15% in 2007.
To find:
The value of the house in 2008.
Solution:
We have,
Value of house in 2005 = 600,000
It increased by 25% in 2006.
Value of house in 2006 = [tex]600,000+\dfrac{25}{100}600,000[/tex]
= [tex]600,000+150,000[/tex]
= [tex]750,000[/tex]
It increased by 10% in 2007
Value of house in 2007 = [tex]750,000+\dfrac{10}{100}750,000[/tex]
= [tex]750,000+75,000[/tex]
= [tex]825,000[/tex]
But it dropped by 15% in 2007.
Value of house in 2008 = [tex]825,000-\dfrac{15}{100}825,000[/tex]
= [tex]825,000-123,750[/tex]
= [tex]701,250[/tex]
Therefore, the value of the house in 2008 is 701,250.
