Question

In early 2018, selected automobiles had an average cost of $20,000. The average cost of those same motor vehicles is now $24,000. What was the rate of increase for this item over this time period

Answer 1

Answer:

20%

Explanation:

Calculation for What was the rate of increase for this item over this time period

Using this formula

Rate of increase= (Ending avarage cost − Beginning avarage cost )/ Beginning avarage cost

Let plug in the formula

Rate of increase= ($24,000 − $20,000) / $20,000

Rate of increase= $4,000/$20,000

Rate of increase= 0.2*100

Rate of increase= 20%

Therefore the rate of increase for this item over this time period is 20%