In the mid 1990s selected automobiles had an average cost of $12000.The average cost of those same automobiles is now $20000. What was the rate of increase for these automobiles between the two time periods?
20,000 - 12,000 = 8,000
8,000 / 12,000 = = 0.666667 = 67%
To calculate the rate of increase for the automobiles between the two time periods, you can use the formula:
Rate of Increase = (New Value - Old Value) / Old Value
In this case, the old value is $12000 and the new value is $20000. Plugging these values into the formula, we get:
Rate of Increase = ($20000 - $12000) / $12000
Simplifying the equation:
Rate of Increase = $8000 / $12000
Dividing the numerator by the denominator:
Rate of Increase = 0.6667
Multiplying by 100 to get the percentage:
Rate of Increase = 66.67%
So, the rate of increase for these automobiles between the mid 1990s and now is approximately 66.67%.