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