Question

explain.. Let y = 20,000(0.95)x represent the buying power of $20,000 with an inflation rate of 5% per year. What is the buying power when x = 0?

Answer 1

What happens when you plug in x = 0?

Answer 2

it stays 20,000 right?

Answer 3

exactly, so the buying power doesn't change (since time hasn't changed)

Answer 4

Okay! So the answer is 20,000

Answer 5

yes, the answer is 20,000 (most likely you'll leave off the commas though if you're entering this into a computer system)