Question

A family rented an apartment in September 2014 for $1415 per month. Since then there were several price hikes, and the last one was in June 2019, when it went up from $1594 to $1674 per month. That last price hike was a 5% increase and the husband wanted to move. But the wife wanted to calculate the average yearly percentage increase in the rent over the whole time they lived there. If the average hike per year is less than 5%, then the family will not move.

Answer the following questions:

1) What is the average yearly percentage price hike in the family's rent, from September 2014 to June 2019? Give your answer as AN EXACT PERCENTAGE.

2) Should they move?

Must use algebra to solve. Show all work.

Answer 1

1)

Begin by finding the percent change:

The averge yearly peracent price hike is simply the percent change divided by the number of years. Here, the number of years from 2014 to 2019 is 5. Hence,

2)

The family should not move because the average yearly percent hike is less than 5%.