A house has increased in value by 38% since it was purchased. if the current values is $621,000, what was the value when it was purchased?
purchase value*1.38=621K
solve for purchase value
Po + 0.38Po = $621,000.
Po =
To find the value of the house when it was purchased, we need to determine the original value before the 38% increase.
We can start by representing the current value of the house as $621,000.
Let x be the original value of the house before the increase.
The house has increased in value by 38%. This means the increase is 38/100 * x = 0.38x.
Adding the increase to the original value gives us the current value: x + 0.38x = $621,000.
Combining like terms, we have 1.38x = $621,000.
To isolate x, we divide both sides of the equation by 1.38: x = $621,000 / 1.38.
Evaluating this expression gives us the original value of the house: x ≈ $450,000.
Therefore, the value of the house when it was purchased was approximately $450,000.