Thank you for the opportunity to help you with your question!
a. The average rate of change will equal the change in cost divided by the number of years. You want to determine how much less the machine costs each year. You can use the basic 'rate' equation seen below, then plug in the given values:
cost2=$7500 cost of machine at end of 3 years
cost1=$15600 cost of machine originally
Rate = -$2700/yrs
b. Same concept for this question:
Rate = -$940/yrs
c. Since the signs for questions a and b are negative, this means that the machine will cost less each year. If looking at problem a, the answer means that for every one year, the machine costs $2700 less on average.
Please let me know if you need any clarification. I'm always happy to answer your questions.
Sep 3rd, 2015
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