Explain the error in each problem, Then work the problem correctly.
Cathy Woolfrey is buying a new home. Her realtor tells her that the home she is buyings has increased in price by 10% since it was last sold. If the current price of the home is $220,000, what was the price the last time it was sold?
P = RB
P = 10% ($220,000)
P = 0.1 ($220,000) The home sold for $198,000 the last time it sold.
P = $198,000