A house has increased in value by 38% since it was purchased. If the current value is $621,000 what was the value when it was purchased.

The original value of the house when it was purchased was $450,000.

Let us assume the original value of the house was x. This means that the house has increased by 38% from x to become $621,000.

In order to find the original value therefore, you can use the formula:

Original value + (Original value x Increase) = Current price

x + (38% × x) = 621,000

1.38x = 621,000

x = 621,000 / 1.38

= $450,000

In conclusion, the original value was $450,000.

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