A) The rate for the first 3 years :
15,600 - 7500 = 8100
8100/3 years = 2,700 per year depreciation.
B) The rate between 3 and 8 years:
7500 - 2800 = 4700
4700 / 5 year = 940 per year depreciation.
C) the value of the machine depreciated at a higher rate in the first 3 years. After the first 3 years, the depreciation rate decreased.
Answer:
A) Given,
The value of the machine when purchased = 15,600
And, the value of the machine after 3 years = 7,500
So, average rate of change in value (depreciation) of the machine between its purchase and the end of 3 years
[tex]=\frac{\text{the value after 3 years-the value when it purchased}}{3-0}[/tex]
[tex]=\frac{7500-15600}{3}[/tex]
[tex]=\frac{-8100}{3}[/tex]
= - 2,700
B) The value of car after 8 years = 2,800,
So, the average rate of change in the value of car between the end of 3 years and 8 years
[tex]=\frac{\text{the value after 8 years-the value after 3 years}}{8-3}[/tex]
[tex]=\frac{2800-7500}{5}[/tex]
[tex]=\frac{-4700}{5}[/tex]
=- 940
C) The negative sign shows the value of car is decreasing.
