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In 2003, Jerry bought a house - Edexcel - GCSE Maths - Question 12 - 2018 - Paper 3

Question 12

In 2003, Jerry bought a house. In 2007, Jerry sold the house to Mia. He made a profit of 20%. In 2012, Mia sold the house for £162,000. She made a loss of 10%. Wo... show full transcript

Worked Solution & Example Answer:In 2003, Jerry bought a house - Edexcel - GCSE Maths - Question 12 - 2018 - Paper 3

Step 1

Calculate Mia's Purchase Price:

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Answer

To find out how much Mia paid for the house in 2007, we need to reverse the loss of 10% she experienced.

Let Mia's selling price be £162,000. We can denote her purchase price as P:

$ext{Selling Price} = P - 0.1P = 0.9P$

Solving for P gives us:

$P = \frac{£162,000}{0.9} = £180,000$

Thus, Mia bought the house for £180,000.

Step 2

Calculate Jerry's Purchase Price:

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Answer

Now we need to find out how much Jerry paid for the house in 2003. He made a profit of 20%, meaning Mia paid 120% of the price Jerry bought it for.

Let Jerry's purchase price be J:

$\text{Mia's Purchase Price} = J + 0.2J = 1.2J$

Substituting Mia's purchase price (which we calculated as £180,000):

$180,000 = 1.2J$

To find J, rearranging gives:

$J = \frac{£180,000}{1.2} = £150,000$

Hence, Jerry paid £150,000 for the house in 2003.

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