Chapter 1.2, Problem 20E

Reminder Round all answers to two decimal places unless otherwise indicated.

Sales Income The following table shows the net monthly income $N$ for a real estate agency as a function of the monthly real estate sales $s$, both measured in dollars.

$s=Sales$	$N=Netincome$
$450,000$	$4000$
$500,000$	$5500$
$550,000$	$7000$
$600,000$	$8500$

a. Make a table showing, for each of the intervals in the tax table above, the average rate of change in $N$. What pattern do you see?

b. Use the average rate of change to estimate the net monthly income for monthly real estate sales of $\$520,000$. In light of your answer to part a, how confident are you that your estimate is an accurate representation of the actual income?

c. Would you expect $N$ to have a limiting value? Be sure to explain your reasoning.