Question

Interest rates have dropped steadily over the last six months. Each month they have decreased by 1/4 point.

A. Write an expression to represent the total change of rates over the last six months.

B. Find the total change. Make sure to express your answer as a mixed number in lowest terms.

Answer 1

The answer to A would be, 6(-1/4)

Answer 2

Answer with explanation:

Let the Initial Interest rate = x

It is given that each month Interest rate decreases by
`(1)/(4)` point.

A.→ Expression which represent the total change of rates over the last six months

Let total change of rate over the last six month= y

`\rightarrow y=6 * (-x)/(4)\\\\\rightarrow y=-1.5x`

B.→

Total Change

`=(I_(6)-I_(0))/(T_(6)-T_(1))\\\\=(-1.5 x -x)/(6-1)\\\\=(-2.5 x)/(5)\\\\=-0.5 x\\\\=(-5x)/(10)\\\\=(-x)/(2)`