SOLUTION: Two houses are of equal value. One house was sold for $127000 resulting in a loss of 15%. At what price must the other house be sold for, in order to gain 8% on the sale of both ho

Algebra ->  Percentage-and-ratio-word-problems -> SOLUTION: Two houses are of equal value. One house was sold for $127000 resulting in a loss of 15%. At what price must the other house be sold for, in order to gain 8% on the sale of both ho      Log On


   

Question 983698: Two houses are of equal value. One house was sold for $127000 resulting in a loss of 15%. At what price must the other house be sold for, in order to gain 8% on the sale of both houses? (Let P be the price of a house).
Thanks if you choose to solve this!
Answer by KMST(5328) About Me  (Show Source):
You can put this solution on YOUR website!
A loss of 15% means that the first house was sold at 100% - 15% = 85% of its value.
%2285%25%22=85%2F100=0.85
If x= value of one house (in $) ,
0.85x=127000--->x=127000%2F0.85--->x=149411.765 (rounded to 3 decimal places).
The value of the two houses would be twice that:
2x=2%2A149411.765=298823.53 ,
To gain 8% on the sale of both houses, the sum of the selling prices must be
100% + 8% = 108% of that 2x=298823.53 amount that is the total value of the two houses.
( %22108%25%22=108%2F100=1.08 )
If y= selling price of the second house (in $), that means
y%2B127000=1.08%2A298823.53 .
1.08%2A298823.53=322729.41 rounded to 2 decimal places)
y%2B127000=322729.41
y=322729.41-127000
highlight%28y=195729.41%29