Finite Math and Applied Calculus (6th Edition)

Published by Brooks Cole
ISBN 10: 1133607705
ISBN 13: 978-1-13360-770-0

Chapter 10 - Section 10.4 - Average Rate of Change - Exercises - Page 732: 30a

Answer

${{\$}} 175$ billion per year. Between 2000 and 2006, the value of subprime debt increased at an average rate of around ${{\$}} 175$ billion per year.

Work Step by Step

The average rate of change of $f$ over the interval $[a, b]$ is given as: Average rate of change of $f\displaystyle \ \ =\frac{f(b)-f(a)}{b-a}$ The units of the average rate of change of $f$ are units of $f(x)$ per unit of $x$. Average rate of change of $f\ \ $ over $[2,6]$ is $\displaystyle \frac{f(6)-f(2)}{6-2}=\frac{1200-500}{4}=\frac{700}{4}=175$ billion per year.
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