The prices of houses in tennessee have been on a steady incline for the last several years. if the average price of a house has increased by 8.5% over the last year to $135,000, what was the average price of a house last year?

The average price of a house last year was = $124,423.96

Step-by-step explanation:

Let the average price of houses in Tennessee last year in dollars be =

This year the increase percentage in average price was = 8.5%

The change in average price can be calculated in dollars as:

⇒

⇒

⇒

New increased average price in dollars can be calculated as:

⇒

⇒

The new increased average price actually is = $135,000

So, we have,

Dividing both sides by 1.085

∴

Thus average price of a house last year was = $124,423.96

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step-by-step explanation:

step-by-step explanation: