Question

A car was valued at $29,000 in the year 1994. The value depreciated to $11,000 by the year 2001.

A) What was the annual rate of change between 1994 and 2001?
r=
Round the rate of decrease to 4 decimal places.

Answer 1

0.6207

Explanation:

$29,000=1994

$11000=2001

$29000-$11000=$18000

$18000/$29000=0.6207

Answer 2

rate of change is: -$2571.4286 per year

Explanation:

Recall that he rate of decrease is given by the following formula:

`Rate=(Value_f-Value_I)/(time \, elapsed)`

That is the final value of the car ($11000) minus its initial value ($29000), all divided by the time elapsed (7 years between 1994 and 2001). Then the formula gives:

`Rate=(11000-29000)/(7) =-(18000)/(7) =-2571.4286\,(dollars)/(year)`

Notice the negative sign due to the fact that the value is decreasing with the years.

Normally, this rate will be considered a rate of DECREASE, and its value given as $2571.4286 (without the negative sign, since the word "DECREASE" implies already a negative rate of change.