Assume that in january 2013, the average house price in a particular area was $289,400. in january 2000, the average price was $206,300. what was the annual increase in selling price?

The problem is an arithmetic sequence with:

a₁ = 206,300

an = 208,400

n = 2013 - 2000

n = 13

To find the annual increase, use this following formula

an = a₁ + d (n - 1)

d represents the annual increase

Input the numbers

an = a₁ + d (n - 1)

289,400 = 206,300 + d (13 - 1)

289,400 = 206,300 + 12d

289,400 - 206,300 = 13d

83,100 = 12d

12d = 83,100

d = 83,100/12

d = 6,925

The annual increase is $6925