1. **State the problem:** We want to find the starting value of George's house given that after one year it increased by 9%, and after the second year it decreased by 4%, ending at 183120. 2. **Define variables:** Let the starting value be $S$. 3. **After one year:** The value increased by 9%, so the new value is $$ S \times (1 + 0.09) = 1.09S $$ 4. **After two years:** The value decreased by 4% from the value after one year, so $$ 1.09S \times (1 - 0.04) = 1.09S \times 0.96 = 1.0464S $$ 5. **Given final value:** After two years, the value is 183120, so $$ 1.0464S = 183120 $$ 6. **Solve for $S$:** $$ S = \frac{183120}{1.0464} $$ 7. **Simplify the fraction:** $$ S = \frac{\cancel{183120}}{\cancel{1.0464}} \approx 175000 $$ 8. **Calculate value after one year:** $$ 1.09 \times 175000 = 190750 $$ **Final answers:** - Starting value $S = 175000$ - Value after one year = 190750 - Value after two years = 183120 (given)