You Bought a House for $130,000 in 1999

question 98

Multiple Choice

You bought a house for $130,000 in 1999. The previous owner paid $50,000 for the house in 1980. Comparing the converted cost, who paid more for the house? (Assume the 1999 CPI is 166.2 and the 1980 CPI is 82.4.)

• A) You paid much more.
• B) The previous owner paid much more.
• C) You both paid approximately the same amount.

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Definitions:

Percentage

A percentage is a way of expressing a number as a fraction of 100, used to describe proportions and changes in quantities.

Value

The worth or importance of something, often determined by its utility, scarcity, or demand.

HST

Harmonized Sales Tax, a combined tax that includes both federal and provincial sales taxes, applied in some regions of Canada.

Pay-No-HST

A situation or offer where the Harmonized Sales Tax (HST) is not applied, making the purchase effectively tax-free.