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Table 2 contains information about the price of a Tesla Model 3 car between 2017 and 2019 - Edexcel - GCSE Business - Question 5 - 2021 - Paper 1
Question 5
Table 2 contains information about the price of a Tesla Model 3 car between 2017 and 2019. Year Price (in US$) 2017 50,000 2018 41,000 2019 35,000 (a) Usin... show full transcript
Worked Solution & Example Answer:Table 2 contains information about the price of a Tesla Model 3 car between 2017 and 2019 - Edexcel - GCSE Business - Question 5 - 2021 - Paper 1
Step 1
Using the information in Table 2, calculate the percentage reduction in the price of a Tesla Model 3 car between 2017 and 2019.
Answer
To calculate the percentage reduction in price, we use the formula:
ext{Percentage Reduction} = rac{ ext{Old Price} - ext{New Price}}{ ext{Old Price}} imes 100Where the Old Price is 35,000 (2019).
Substituting the values:
ext{Percentage Reduction} = rac{50,000 - 35,000}{50,000} imes 100 = rac{15,000}{50,000} imes 100 = 30\\%Thus, the percentage reduction in price is 30%.
Step 2
Using the information in Table 2, calculate the average price of a Tesla Model 3 car over the three year period between 2017 and 2019.
Answer
To find the average price over the three years, we use the formula:
ext{Average Price} = rac{ ext{Total Price}}{ ext{Number of Years}}The Total Price from 2017 to 2019 is:
Now substituting the values into the average price formula:
ext{Average Price} = rac{126,000}{3} = 42,000Therefore, the average price of a Tesla Model 3 car over the three-year period is £42,000.