Question

The value of a car dropped from $30,600 to $28,800 over the last year. Determine the absolute and relative change in this sitation.

Answer 1

From the given question

There are given that the car dropped from $30,600 to $28,800.

Now,

First, find the absolute change;

Then,

From the formula of absolute change:

`\text{Absolute change=}\lvert endingquantity-startinquantity\rvert`

Where;

The ending quantity is $28800 and starting quantity is 30600.

Then,

`\begin{gathered} \text{Absolute change=}\lvert endingquantity-startinquantity\rvert \\ \text{Absolute change=}\lvert28800-30600\rvert \\ \text{Absolute change=}\lvert-1800\rvert \\ \text{Absolute change=1}800 \end{gathered}`

And,

From the formula of relative change:

`\text{relative change=}\frac{absolute\text{ change}}{\text{starting quantity}}`

Then,

`\begin{gathered} \text{relative change=}\frac{absolute\text{ change}}{\text{starting quantity}} \\ \text{relative change=}(1800)/(30600) \\ \text{relative change=}0.0588 \end{gathered}`

Hence, the value of absolute change is 1800 and the value of relative change is 0.0588.