What is the constant rate of change if you started with an account value of $1,000 and after 3 years the account value was $1,750?

Question

The constant rate of change is ____ per year.

(1 point)
Responses

$250
$250

$750
$750

$500
$500

$245

Answer 1

To find the constant rate of change, we can use the formula for the rate of change, which is:

\[ \text{Rate of Change} = \frac{\text{Final Value} - \text{Initial Value}}{\text{Time Period}} \]

In this case:

• Initial Value = $1,000
• Final Value = $1,750
• Time Period = 3 years

Plugging in the values:

\[ \text{Rate of Change} = \frac{1750 - 1000}{3} = \frac{750}{3} = 250 \]

Therefore, the constant rate of change is $250 per year.