A house's value increases by 12% annually. If its current value is $300,000, wha

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Question: A house\'s value increases by 12% annually. If its current value is $300,000, what will be its value after one year?

Options:

Correct Answer: $336,000

Solution:

Value after one year = Current Value + (12% of Current Value) = 300000 + (0.12 * 300000) = 300000 + 36000 = $336,000.

A house's value increases by 12% annually. If its current value is $300,000, what will be its value after one year?

A house's value increases by 12% annually. If its current value is $300,000, what will be its value after one year?

Step 1: Identify the current value of the house, which is $300,000.
Step 2: Determine the percentage increase, which is 12%.
Step 3: Convert the percentage to a decimal by dividing by 100. So, 12% becomes 0.12.
Step 4: Calculate the amount of increase by multiplying the current value by the decimal. This is 0.12 * 300,000.
Step 5: Perform the multiplication: 0.12 * 300,000 = 36,000.
Step 6: Add the increase to the current value to find the new value: 300,000 + 36,000.
Step 7: Perform the addition: 300,000 + 36,000 = 336,000.
Step 8: The value of the house after one year will be $336,000.

Percentage Increase – Understanding how to calculate a percentage increase on a given value.
Basic Arithmetic – Applying basic addition and multiplication to find the new value.