Question

Warehouse Club Membership If the annual fee for a warehouse club membership is $100 and the reward rate is 2% on club purchases for the year, then the linear equation y = 100 - 0.02x models the actual annual cost of the membership y, in dollars. Here x represents the annual amount of club purchases, also in dollars. (a) Determine the actual annual cost of the membership if club purchases for the year are $2400 (b) What amount of club purchases would reduce the actual annual cost of the mem bership to $50? ) How much would a member have to spend in annual club purchases to reduce the annual membership cost to $0?

Answer 1

(a) $52

(b) $2500

(c) $5000

Explanation:

(a) y = 100 - 0.02x

x = 2400

y = 100 - 0.02(2400)

y = 100 - 48

y = 52

$52

(b) 50 = 100 - 0.02x

-50 = -0.02x

x = 2500

$2500

(c) 0 = 100 - 0.02x

0.02x = 100

x = 5000

$5000