Question

In the year 2010, Xavier's car had a value of $22,000. When he bought the car in 2006 he paid $28,000. If the value of the cardepreciated linearly, what was the annual rate of change of the car's value? Round your answer to the nearest hundredth if necessary.

Answer 1

The annual rate of change is given by:

`A\mathrm{}R\mathrm{}C=(f(b)-f(a))/(b-a)`
`\begin{gathered} A\mathrm{}R\mathrm{}C=(22000-28000)/(2010-2006) \\ A\mathrm{}R\mathrm{}C=(-6000)/(4)=-1500 \end{gathered}`

Hence, the annual rate of change is -1500 dollars/year, meaning the car depreciates/loses value by an amount of 1500 dollars