House Prices This problem gives you the chance to:
• work with graphs and formulas in a real context
In March 2006, a newspaper article reported that houses in Maryland are so expensive that many
people are unable to afford the monthly house payments.
This graph shows the average house price and the average monthly payment for all the different
counties in Maryland.
House Prices and Payments
5000
4000
3000
Average monthly payment/dollars
2000
1000
0+
300000
1.
100000 200000
400000 500000 600000
Average house price/dollars
a What does the pattern of the data indicate about the connection between house prices and
monthly payments?
b. Find the monthly payment for a house costing $450 000.
c Find a formula connecting the average monthly payment with the average house price.