Housing prices in a particula county have incheased by 255% over the prce of houses five yrs ago (a) 5260,000 was the average price of a house five years ago, what is the average pnice (in $) of a house today? (b) Economests predict that next year housing prices will drop by 5% in ths area. Based on vour answer from part (a), what wi the average pnce tin $1 of ahouse be next year

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A)
Housing prices in a particular county have increased by 25Sover the prce of houses five yar ago.
ta) 5260.000 was the average price of a house fve vears ago, what is the average pnce (n $) of a house today?
(b) Economists predict that next year housing prices wi dcop by S in this area. Hased on vour answer from part (a), what wil thie average pnce tin s) of
ahouse be next year?
Transcribed Image Text:Housing prices in a particular county have increased by 25Sover the prce of houses five yar ago. ta) 5260.000 was the average price of a house fve vears ago, what is the average pnce (n $) of a house today? (b) Economists predict that next year housing prices wi dcop by S in this area. Hased on vour answer from part (a), what wil thie average pnce tin s) of ahouse be next year?
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