Use an Equation to Solve the Problem

question 8

Multiple Choice

Use an equation to solve the problem.
The average price of homes in one neighborhood decreased 8 % since last year, a drop of $5,800 . What was the average price of a home last year?

• A) $69,500
• B) $74,500
• C) $73,500
• D) $72,500
• E) $76,500

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Definitions:

National Saving

The total amount of savings in a country, equal to the sum of private and public savings; it represents the difference between a nation's income and consumption.

Public Saving

The difference between tax revenues and government spending, representing the amount of surplus or deficit in the government's budget.

Private Saving

The portion of households' income that is not used for consumption or paying taxes, and is instead saved.

Savers

Individuals or entities that set aside income or resources for future use, often with the intent of accumulating wealth or for future investment.