##### Calculating an original price on a house

 Mathematics Tutor: None Selected Time limit: 1 Day

If a house is worth \$175,000 today and has appreciated at 5% per year, what was the house worth 6 years ago?  And, how is this solved?

May 31st, 2015

175000 5% per year

what was it worth 6 yeas ago

so for each year we go back the price of the house drops 5% from that value

175000*0.95^x x=number of years

175000*0.95^5= 135411.6640625

or you can go the long way and do

175000*.95=166250*.95=157937.5*.95=150040.625*.95=142538.592375*.95=135411.66275625

i use 0.95 since we still maintain 95% of the value

May 31st, 2015

whoops i thought 5 years its suppose to be 6 so 175000*.95^6

= \$128641.08 was the value of the house worth 6 years ago

continuation from before 135411.66275625*.95=128641.08

= \$128641.08 was the value of the house worth 6 years ago

= \$128641.08 was the value of the house worth 6 years ago

May 31st, 2015

Jordan.  Thanks for your help.  The answer actually is slightly different.  We had the answer, we just didn't know how to solve it.  The formula to solve is actually 175,000 / (1.05^6) = 130,587.  Again, though, thank you very much.

Jun 1st, 2015

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May 31st, 2015
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May 31st, 2015
Dec 6th, 2016
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