The price of all houses in a particular area has increased by 12% over the last year.
1. A house is for sale at K280000. How much was it worth a year ago? Show your work.
Let x be the value of the house a year ago.
Given that the price has increased by 12%, the current value of the house is:
x + 0.12x = 1.12x
We know that the current value of the house is K280000, so we can set up the equation:
1.12x = K280000
Divide both sides by 1.12 to solve for x:
x = K280000 / 1.12
x = K250000
Therefore, the house was worth K250000 a year ago.