Use an equation to solve the problem. The average price of homes in one neighborhood decreased 8% since last year, a drop of $7,400. What was the average price of a home last year?
A) $89,500
B) $90,500
C) $93,500
D) $92,500
E) $88,500

Question

Quizplus · Accepted Answer

Let x be the average price of a home last year.
Then, the new average price is 0.92x (8% decrease is the same as multiplying by 0.92).
We also know that 0.92x = x - 7,400 (the new price is $7,400 less than the old price).
Solving for x, we get x = $92,500.
Therefore, the answer is choice D, $92,500.

Use an Equation to Solve the Problem