SOLUTION: A home was purchased for $120,000 in 2001. After one year the home had appreciated 5%. After one more year, the home had appreciated an additional 4%. What was the value of the

Question 38156: A home was purchased for $120,000 in 2001. After one year the home had appreciated 5%. After one more year, the home had appreciated an additional 4%. What was the value of the home after these two years, rounded to the nearest hundred dollars?
A) $124,800 B) $126,000 C) $130,800 D) $131,000
. A new car is marked down from $28,000 to $25,200. What is the discount rate?
A) 9% B) 11% C) 10% D) 15%
Answer by fractalier(6550) (Show Source): You can put this solution on YOUR website!
A $120,000 home would be worth $126,000 after one year (a 5% increase).
A $126,000 home would be worth $131,040 after the next year (a 4% increase).
Choice D is best.
A discount rate is [[old - new) / old] x 100%...so we have
(28,000 - 25,200) / 28000 = 10%
Choice C.
RELATED QUESTIONS
A home was purchased for $120,000 in 2001. After one year the home had appreciated 5%.... (answered by josmiceli)

A home purchased for $300,000 depreciated 8% over a 1-year period. What was the value... (answered by DoodleBopper)

A home purchased for $300,000 depreciated 8% over a 1-year period. What was the value of (answered by Nate)

A home purchased for $300,000 depreciated 8% over a 1-year period. What was the value of... (answered by checkley71)

A home purchased for $300,000 depreciated 8% over a 1-year period. What was the value of (answered by Nate)

A home purchased for $300,000 depreciated 8% over a 1-year period. What was the value of (answered by stanbon)

A home purchased for $300,000 depreciated 8% over a 1-year period. What was the value of... (answered by jim_thompson5910,checkley71)

A home purchased for $300,000 depreciated 8% over a 1-year period. What was the value of (answered by uma)

what would the value of a home be if it was purchased for $35000, and appreciated 5% per... (answered by scott8148)