Awa took out a mortgage for her new home, originally valued at $250,000 After several years of payments, her balance decreased to $180,000 However, due to rising interest rates, her new balance increased to $190,000 What is the overall percent change in Awa's mortgage balance after all events, including the interest rate increase? Use the percent change formula: Percent change=(new value−original value)/(original value)⋅100%
Use the original mortgage balance of $250,000 and the final balance of $190,000. The percent change is (($190,000 − $250,000) ÷ $250,000) × 100% = −24%. The negative sign means the balance decreased, so the answer is 24 percent decrease.
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