Home prices have dropped 5% in the past three years. An average home in Indianapolis three years ago was $130,000. What's the average home price now?

If I have understood the question right, then to find the current price we need to simply multiply the two out.

130,000 x 0.95 = 123,500$

This would be the equation: What is 5% of 130,000?

To do this, convert the percentage to a decimal (5% =.05) and multiply. This is $6500. So then, you deduct $6,500 from 130,000, thus getting $123,500 as the answer.