Question

A business owner is looking at sales records for the last 10 years. In 2009, he calculated his net profit was $75,000 for the year. In 1999, he did not make a profit, instead making a net loss of $5,000. Find the rate of change of his profit from 1999 to 2009. A. $35/yr B. $40/yr C. $7,000/yr D. $8,000/yr

Answer 1

75,000 - 5,000 = 70,000 ÷ 10 = 7,000

Answer is C.

Answer 2

Let P(2009) represents profit in year 2009 which is $75000 and P(1999) is the profit in year 1999 which is -5000 .

TO find the rate of change of profit, we will use the following formula

`= (P(2009)-P(1999))/(2009-1999) = (75000-(-5000))/(10)`

`= (80000)/(10) = 8000`

Therefore the correct option is D .