According to the Census Bureau, in October 2016, the average house price in the United States was $354,900. In October 2000, the average price was $215,100. What was the annual increase in the price of the average house sold? (Do not round intermediate calculations and enter your answer as a percent rounded answer to 2 decimal places, e. g., 32.16.)

Question

Maximus May

Business

8 August, 23:36

According to the Census Bureau, in October 2016, the average house price in the United States was $354,900. In October 2000, the average price was $215,100. What was the annual increase in the price of the average house sold? (Do not round intermediate calculations and enter your answer as a percent rounded answer to 2 decimal places, e. g., 32.16.)

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Answers (1)

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Victor · Answer 1

3.18%

Explanation:

The computation of the annual increase in the price is shown below:

= (Average price in year 2016 : Average house price in year 2000) ^ (1 : difference in years) - 1

= ($354,900 : $215,100) ^ (1 : 16) - 1

= 1.65^ (1 : 16) - 1

= 1.031793402 - 1

= 3.18%

The difference in years would be

= Year 2016 - Year 2000

= 16 years