Question

In 2006, Chris bought a new boat for $34,500. The boat was worth $24 500 in the year 2009. If Chris knows that the value of the boat depreciated linearly, what was the annual rate of change of the boat's value? Round your answer to the nearest hundredth if necessary

Answer 1

Answer:

depreciation is $3,333.33 per year

Step-by-step explanation:

Initially : date = 2006, worth = $34,500

Finally : date = 2009, worth = $24,500

if we let x = date and y = worth, we end up with two points (coordinates) on the x-y graph

i.e

Initial = Point 1 (2006, 34500)

Final = Point 2 (2009, 24500)

The rate of change is simply the slope, m of the line joining these two points

given by:

m = (34500 - 24500) / (2006-2009)

= 10000 / -3

= -3,333.33

hence the annual rate of depreciation is $3,333.33 per year