Realtors use an index to compare housing prices in major cities. The housing price index values for several cities are given in the table below. Use the following formula to answer the question.

$\underset{\text { (other town) }}{\text { price }}=\underset{\text { (your town) }}{\text { price }} \times \frac{\text { index of other town }}{\text { index in your town }}$

$\begin{array}{lc|lc} \text { City } & \text { Index } & \text { City } & \text { Index } \\ \hline \text { Atlanta } & 100 & \text { Las Vegas } & 115 \\ \text { Boston } & 146 & \text { Los Angeles } & 190 \\ \text { Chicago } & 105 & \text { Miami } & 161 \\ \text { Dallas } & 121 & \text { Phoenix } & 122 \\ \text { Denver } & 136 & \text { San Franciscol } & 172 \end{array}$

For a house valued at $\$ 600,000$ in Boston, find out the price of a comparable house in Los Angeles.

Solution

VerifiedWe can have the price of comparable house in Miami as:

$\begin{aligned} \text{Price}_\text{ Los Angeles}&=\text{Price}_\text{ Boston}\times\frac{\text{Index of Los Angeles}}{\text{Index of Boston}}\\ &=\$600,000\times\frac{190}{146}\\ &=\$780,821.9178\\ &\approx781,000 \end{aligned}$

## Create an account to view solutions

## Create an account to view solutions

## More related questions

- computer science

1/4

- computer science

1/7