Question

A company made a profit of $90,000 in the year 2006. In 2010, the same company made a total profit of $135,000. If the rate of change is a constant, what is the average rate of change of the company’s profit in dollars per year? HELP

Answer 1

Average rate of change = $11250 per year.

Explanation:

Let's take two points from given information (2006, 90000) and (2010, 135000).

Now, use slope formula to find slope.

Slope =
`(y2-y1)/(x2-x1)`

Use the two points to find average rate of change (slope)

Average rate of change =
`(135000-90000)/(2010-2006)`

=
`(45000)/(4)`

=11250

Average rate of change = $11250 per year.