Exploring maths through problem solving

Problem of the Week

Sydney House Prices

In last Saturday’s newspaper, an article on Sydney house prices argued that they are falling from their peak. In this table you can see that house prices in the suburb of Cabramatta have fallen by 2.27%: from a peak price of $1.1 million to a price of $1.1 million. How is this possible?

Answer:

The prices have been rounded to the nearest 0.1 million dollars.

For example, if the peak price was $1.1 million dollars, a 2.27% decrease would make it $1.1 million x 97.93% = $1.07723 million.

Rounded to the nearest $0.1 million, $1.07723 million is $1.1 million.

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