Contemporary Mathematics for Business & Consumers 8th Edition by Robert Brechner,Geroge Bergeman

Exercise 33

Solve the following increase or decrease problems for the unknown. Round decimals to hundredths and percents to the nearest tenth.
Housing prices in Foster County have increased by 28.5% over the price of houses five years ago.
a. If $240,000 was the average price of a house five years ago, what is the average price of a house today
b. Economists predict that next year housing prices will drop by 5% in this area. Based on your answer from part a, what will the average price of a house be next year