Problema Solution
The average house value in a neighborhood is $230,000 based on 100 houses. Due to some playground and street improvements, 50 houses have increased in value by $12,000 and the other 50 remained unchanged. What is the new average value of the 100 houses?
Answer provided by our tutors
let the sum of the values of all 100 houses be S
since the average is $230,000 we have
S/100 = 230,000
Due to some playground and street improvements, 50 houses have increased in value by $12,000 and the other 50 remained unchanged thus the sum of the new values of all 100 houses S1 will be
S1 = S + 50*12000
and the new average will be S1/100
S1/100 = (S + 50*12000)/100 = S/100 + 6000 = 230,000 + 6000 = $236,000
the new average value of the 100 houses is $236,000.