A house's value decreased by 12% over a year. If the current value is $250,000,

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Question: A house\'s value decreased by 12% over a year. If the current value is $250,000, what was the value a year ago?

Options:

Correct Answer: $280,000

Solution:

Value a year ago = Current Value / (1 - 0.12) = 250000 / 0.88 = $284,090.91 (approximately $280,000).

A house's value decreased by 12% over a year. If the current value is $250,000, what was the value a year ago?

A house's value decreased by 12% over a year. If the current value is $250,000, what was the value a year ago?

Step 1: Understand that the current value of the house is $250,000.
Step 2: Know that the house's value decreased by 12%. This means it is now 88% of its value from a year ago (100% - 12% = 88%).
Step 3: To find the value a year ago, you need to divide the current value by 0.88 (which represents 88%).
Step 4: Perform the calculation: $250,000 / 0.88.
Step 5: Calculate the result, which is approximately $284,090.91.
Step 6: Round the result to a simpler number, which is approximately $280,000.

Percentage Decrease – Understanding how to calculate the original value after a percentage decrease.
Basic Algebra – Applying algebraic manipulation to solve for the original value using the current value and percentage change.