Question

A house is purchased for $375000 and has gained 12% for the last 5 years. What is it now ?

Answer 1

$420,000

Explanation:

The added percentage can be turned into a multiplier to make the problem easier.

value + 12%×value = value(1 +0.12) = 1.12×value

1.12×$375,000 = $420,000

It is $420,000 now.