In 1980, the average price of a home in Brainerd County was $100,000. By 1986 the average price of a home was $112,000. What is the rate of change?

Question

Eli Assouline · Accepted Answer

See a solution process below:

The following formula can be used to determine the percentage change in a value between two times: #p = (N - O)/O * 100# Where: #p# is the percent change - what we are solving for in this problem. #N# is the New Value - $112 thousand in this problem. #O# is the Old Value - $100 thousand in this problem. Substituting and solving for #p# gives: #p = (112 - 100)/100 * 100# #p = 12/100 * 100# #p = 12/color(red)(cancel(color(black)(100))) * color(red)(cancel(color(black)(100)))# #p = 12# The average cost of a home increased by 12% between 1980 and 1986.

Avery Alexander · Answer

undefined To find the rate of change, you can use the formula:

Rate of Change = (Change in Value) / (Original Value)

Substitute the given values:

Rate of Change = ($112,000 - $100,000) / $100,000

Rate of Change = $12,000 / $100,000

Rate of Change = 0.12

To express it as a percentage, multiply by 100:

Rate of Change = 0.12 * 100%

Rate of Change = 12%

Therefore, the rate of change is 12%.