Question

In the year 2011, Ryan's car had a value of $24,500 . When he bought the car in 2007 he paid $30,000 . If the value of the car depreciated 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 of the car's value is $1,375

Answer 2

Explanation:

The initial value of the car was $30,000, and its final value after 4 years was $24,500. To find the total depreciation, subtract the final value from the initial value:

Depreciation = $30,000 - $24,500 = $5,500

Since this depreciation occurred over 4 years, to find the annual rate of change, divide the total depreciation by the number of years:

Annual Rate of Change = $5,500 / 4 = $1,375 per year

So, the annual rate of change of the car's value is $1,375.