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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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  1. 8 August, 23:57
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    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
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