Average rate of change of profit in five years that is from 1998 to 2003 is [tex]\$3000[/tex] per year.
Solution:
Given that
Trader earns a profit of [tex]\$60000[/tex] in 1998
Trader earns a profit of [tex]\$75000[/tex] in 2003
Need to determine average rate of change of profit.
Profit earned by Trader in 1998 let us assume [tex]\mathrm{P}_{98}=60000[/tex]
Profit earned by Trader in 2003 let us assume [tex]\mathrm{P}_{03}=75000[/tex]
Number of years between 1998 and 2003 let say t = 2003 – 1998 = 5 years
[tex]\begin{aligned} \text { Average rate of change of profit } &=\frac{\text {Change in profit}}{\text {number of years}} \\\\ &=\frac{\mathrm{P}_{03}-\mathrm{P}_{98}}{t} \\\\ &=\frac{75000-60000}{5} \\\\ &=\frac{15000}{5}=3000 \end{aligned}[/tex]
