If a sum is worth $550 today and it will be worth $768 two years from now, how much was it worth one year ago?

Question

raffle_snaffle · Answer

@mathmale

raffle_snaffle · Answer

Don't just give me the answer. Help me walk to the solution.

anonymous · Answer

$$\frac{ 550 + 768 }{ 2 } = 659$$ 
Gives you the value after 1 year. I'm assuming this is reflexive so then... 

659 - initial value = 109$ increase or decrease per year.

Take the initial value of 550 - 109.

This is the price from the year before the current year.

raffle_snaffle · Answer

How does (550+768)/2 give you the value after 1 year

raffle_snaffle · Answer

are you taking the average or does 2 represent 2 years?

r.hamza17 · Answer

He is using 2 for the 2 years..

raffle_snaffle · Answer

Okay I think I get it with a little more analyzing.

r.hamza17 · Answer

Where do you need more analyzing?

raffle_snaffle · Answer

So over 1 year the amount increased by 109. So in 2 years the increase went up twice 2*109 = 218

raffle_snaffle · Answer

I got it. Lol Thanks for your help, both of you.