Question

Home prices have dropped 5% in the past three years. An average home in Indianapolis three years ago was $130,000. What’s the average home price now?

Answer 1

This would be the equation: What is 5% of 130,000? 
To do this, convert the percentage to a decimal (5% = .05) and multiply. This is $6500. So then, you deduct $6,500 from 130,000, thus getting $123,500 as the answer. 

Answer 2

The home prices in Indianapolis after a 5% drop of price was $123,500.

What is the percentage?

The percentage can be given as the fraction ratio that is represented in the terms of the fraction of 100.

The given home price three years ago was $130,000, and the drop in price was 5%. The amount of drop in the price is:

Amount dropped = 5% of 130,000

Amount dropped = 5/100 * 130,000

Amount dropped = 6,500

The amount dropped in-home price after3 years is $6,500.

The final home price can be given as:

Final price = Initial price - Amount dropped

Final price = $130,000 - $6,500

Final price = $123,500

The final average price of a home in Indianapolis was $123,500.

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