Question

In one month, the median home price in the Northeast rose from $\mathrm{\$}225,400$ to $\mathrm{\$}241,500$ . Find the percent increase. (Round to the nearest tenth of a percent.)

Answer 1

Step 1: Find the difference between final and initial home price.

Given that the Initial median home price is $\$225,400$.

The final home price is $\$241,500$.

Price increased is $\$241,500-\$225,400=\$16,100$.

Step 2: Find the percent increase.

The percentage formula $\mathrm{Percent}\mathrm{increase}=\frac{\mathrm{Initial}\mathrm{median}\mathrm{home}\mathrm{price}-\mathrm{final}\mathrm{home}\mathrm{price}}{\mathrm{Initial}\mathrm{home}\mathrm{price}}\times 100$.

Substitute the value calculate the percentage of increase in price:

$$\begin{gathered} \mathrm{Percent}\mathrm{increase}=\frac{16,100}{225,400}\times 100 \\ =7.14\% \end{gathered}$$

Hence the increase percent is $7.1\%$

Hence, the percent increase of home price is $7.1\%$.