Problem

4 At the end of 2017 the value of Tamara's house was $£ 220000$ the value of Rahim's house was $£ 160000$ At the end of 2019 the value of Tamara's house had decreased by $20 \%$ the value of Rahim's house had increased by $30 \%$ At the end of 2019 , whose house had the greater value? You must show how you get your answer.

Solution

Step 1 :Let's find the value of Tamara's house at the end of 2019 by decreasing its value by 20\%. So, \(220000 - 0.20 \times 220000 = 220000 \times (1 - 0.20) = 220000 \times 0.80 = 176000\)

Step 2 :Let's find the value of Rahim's house at the end of 2019 by increasing its value by 30\%. So, \(160000 + 0.30 \times 160000 = 160000 \times (1 + 0.30) = 160000 \times 1.30 = 208000\)

Step 3 :Comparing the values of their houses at the end of 2019, we have Tamara's house at \(£176000\) and Rahim's house at \(£208000\)

Step 4 :\(\boxed{\text{At the end of 2019, Rahim's house had the greater value}}\)

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Source: https://solvelyapp.com/problems/35394/

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