Question

A trader earns a profit of $60000 in 1998 and a profit of $75000 in 2003. Find the average rate of change of profit.

Answer 1

Average rate of change of profit in five years that is from 1998 to 2003 is
`\$3000` per year.

Solution:

Given that

Trader earns a profit of
`\$60000` in 1998

Trader earns a profit of
`\$75000` in 2003

Need to determine average rate of change of profit.

Profit earned by Trader in 1998 let us assume
`\mathrm{P}_(98)=60000`

Profit earned by Trader in 2003 let us assume
`\mathrm{P}_(03)=75000`

Number of years between 1998 and 2003 let say t = 2003 – 1998 = 5 years

`\begin{aligned} \text { Average rate of change of profit } &=\frac{\text {Change in profit}}{\text {number of years}} \\\\ &=\frac{\mathrm{P}_(03)-\mathrm{P}_(98)}{t} \\\\ &=(75000-60000)/(5) \\\\ &=(15000)/(5)=3000 \end{aligned}`