The price of a house is originally listed at $130,000. The owners are having a hard time selling it and decide to reduce the price to $104,000. What is the percentage decrease of the price of the house?

Question

A.
80%
B.
26%
C.
2%
D.
20%

Answer 1

To find the percentage decrease in the price of the house, you can use the formula for percentage decrease:

\[ \text{Percentage Decrease} = \frac{\text{Original Price} - \text{New Price}}{\text{Original Price}} \times 100 \]

In this case, the original price is $130,000 and the new price is $104,000.

1. Calculate the decrease in price: \[ 130,000 - 104,000 = 26,000 \]

2. Now, plug this decrease back into the formula: \[ \text{Percentage Decrease} = \frac{26,000}{130,000} \times 100 \]

3. Simplify the fraction: \[ \frac{26,000}{130,000} = \frac{26}{130} = \frac{2}{10} = 0.2 \]

4. Now, convert to percentage: \[ 0.2 \times 100 = 20% \]

Therefore, the percentage decrease in the price of the house is 20%.

The correct answer is D. 20%.