A car was valued at 30k in 1994, it depreciated to 15k by 2000.
What was the annual rate of change between 94 and 2000?
15,000 / 6 = ?
No, Ms. Sue, but thank you!
-.1091
It depreciated to 1/2 its value in 6 years.
(1/2)^(1/6) = 0.89089
So, the depreciation rate is .1091 = 10.91% per year
To find the annual rate of change between 1994 and 2000, we can use the formula for average rate of change:
Rate of change = (Final value - Initial value) / Number of years
In this case, the initial value is $30,000 in 1994, and the final value is $15,000 in 2000. The number of years between 1994 and 2000 is 6.
So, the annual rate of change is:
Rate of change = ($15,000 - $30,000) / 6
Simplifying the equation gives:
Rate of change = (-$15,000) / 6
Therefore, the annual rate of change between 1994 and 2000 is -$2,500.