Question

During a recent housing slump, the median price of homes decreased in the United States. If James bought his house for $360,000 and the value 1 year later was $253,800, compute the percent decrease in the value of the house.

If necessary, round to the nearest tenth of a percent.

Answer 1

Purchase price of the house = $360,000

Price of the house after 1 year = $253,800

Percent decrease in the value of the house = $\frac{Purchase price of the house - Price of the house after 1 year}{Purchase price of the house}$ * 100

⇒ Percent decrease in the value of the house = $\frac{360,000 - 253,800}{360,000}$ * 100

⇒ Percent decrease in the value of the house = $\frac{106,200}{360,000}$ * 100

⇒ Percent decrease in the value of the house = 29.5%

Hence, the price of the house decreased by 29.5% over an year.