Question

Interest rates have dropped steadily over the last six months. Each month they have decreased by 1/4 point.

A. Write an expression to represent the total change of rates over the last six months.

B. Find the total change. Make sure to express your answer as a mixed number in lowest terms.

Answer 1

Answer:

Let the Initial Interest rate = x

It is given that each month Interest rate decreases by \frac{1}{4}

4

1

point.

A.→ Expression which represent the total change of rates over the last six months

Let total change of rate over the last six month= y

\begin{gathered}\rightarrow y=6 \times \frac{-x}{4}\\\\\rightarrow y=-1.5x\end{gathered}

→y=6×

4

−x

→y=−1.5x

B.→

Total Change

\begin{gathered}=\frac{I_{6}-I_{0}}{T_{6}-T_{1}}\\\\=\frac{-1.5 x -x}{6-1}\\\\=\frac{-2.5 x}{5}\\\\=-0.5 x\\\\=\frac{-5x}{10}\\\\=\frac{-x}{2}\end{gathered}

=

T

6

−T

1

I

6

−I

0

=

6−1

−1.5x−x

=

5

−2.5x

=−0.5x

=

10

−5x

=

2

−x