SOLUTION: I am stuck on this question The average price of a new house is 112% of what it was five years ago. If the average price of a new house this year is $125,000, what was the avera

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Question 123371: I am stuck on this question
The average price of a new house is 112% of what it was five years ago. If the average price of a new house this year is $125,000, what was the average price five years ago?
Answer by Fombitz(32388) About Me  (Show Source):
You can put this solution on YOUR website!
112% is the same as 1.12.
The cost today is 1.12 what it was five years ago.
P%281.12%29=125000
P=125000%2F1.12
P=111607.14
Five years ago, the average price was $111,607.14.