Question

let y= 20,000(0.95)^x represents the buying power of $ 20,000 with an infloation rate of 5% per year. what is the buying power when x=0?

a. $ 20,000
b. $19,000
c. $40,000
d. $0

Answer 1

Plug x=0 in your equation for y.

Answer 2

then what would I get for an answer?

Answer 3

You'd get \[20,000(0.95)^0=20,000(1)=20,000\]

Answer 4

thanks!

Answer 5

No problem! :D