Question

5 points

4. Some banks charge a fee on savings accounts that are left inactive for

an extended period of time. The equation y = 5000(0.98)x represents the

value, y, of one account that was left inactive for a period of x years. What

is the y-intercept of this equation and what does it represent? *

Answer 1

(0, 5000)

The value of the account at the start of the year is 5000

Explanation:

Given the equation that represents the value, y, of one account that was left inactive for a period of x years as;

y = 5000(0.98)^x

The y-intercept of the equation occurs at x = 0

Substitute x = 0 into the expression

y = 5000(0.98)^0

y = 5000(1) (any value raise to power of zero is 1)

y = 5000

Hence the y intercept is (0, 5000)

This means that the value of the account at the start of the year is 5000