Question

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

Answer 1

The answer to A would be, 6(-1/4)

Answer 2

Answer with explanation:

Let the Initial Interest rate = x

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

    $\rightarrow y=6 \times \frac{-x}{4}\\\\\rightarrow y=-1.5x$

B.→

Total Change

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