Question

in order to lure new customers to a credit card, a bank is offering an initial cash back award, plus cash back amounting to a percentage of the value of all purchases made with the card. If p is the value if all purchases made with the card and c is the amount of cash back, which of these equations does the graph represent?

Answer 1

c = 0.03p + 150

Explanation:

Let the equation of the line representing the relation between cash back and value of purchases be,

c = mp + b

Where m = slope of the line = rate of change in cash back earned

b = y-intercept = cash back already earned

Slope of the line =
`(\triangle p)/(\triangle c)` = slope of the line passing through points (0, 150) and (2000, 210)

=
`(210-150)/(2000-0)`

=
`(60)/(2000)`

= 0.03

And 'b' = y-intercept = 150

Therefore, equation represented by the graph will be,

c = 0.03p + 150