Final answer:
The equation that models the balance y after x months is y = -$60x + $1,940.
Step-by-step explanation:
The equation that models the balance y after x months can be obtained by finding the slope of the line passing through two points: (3, $940) and (5, $700). The slope of the line is calculated as:
slope = (change in y) / (change in x) = ($700 - $940) / (5 - 3) = -$120 / 2 = -$60.
Using the point-slope form of a linear equation, we can write the equation as:
y - $940 = -$60(x - 3)
simplifying this equation gives: y = -$60x + $1,940