Question

A machine that originally cost 15 600 has a value of 7500 at the end of 3 years the same machine has a value of 2800 at the end of 8 years

A) FIND the average rate of change in value (depreciation) of the machine between its purchase and the end of 3 years

B) find the average tare of change in value of the machine between the end of 3 years and the end of 8 years

C) interpret the sing of your answers

Answer 1

A) Given,

The value of the machine when purchased = 15,600

And, the value of the machine after 3 years = 7,500

So, average rate of change in value (depreciation) of the machine between its purchase and the end of 3 years

`=\frac{\text{the value after 3 years-the value when it purchased}}{3-0}`

`=(7500-15600)/(3)`

`=(-8100)/(3)`

= - 2,700

B) The value of car after 8 years = 2,800,

So, the average rate of change in the value of car between the end of 3 years and 8 years

`=\frac{\text{the value after 8 years-the value after 3 years}}{8-3}`

`=(2800-7500)/(5)`

`=(-4700)/(5)`

=- 940

C) The negative sign shows the value of car is decreasing.

Answer 2

A) The rate for the first 3 years :

15,600 - 7500 = 8100

8100/3 years = 2,700 per year depreciation.

B) The rate between 3 and 8 years:

7500 - 2800 = 4700

4700 / 5 year = 940 per year depreciation.

C) the value of the machine depreciated at a higher rate in the first 3 years. After the first 3 years, the depreciation rate decreased.