An investor invests $525 in stock. For the first six months,

Question

the stock increased at a rate of $25 per month. Identify the slope of the linear relationship. Explain what this means in the context of the problem. Identify the y-intercept of the linear relationship. Explain what this means in the context of the problem. Create a model in slope intercept form to represent the total value of the stock, f(x), based on the number of months, x.

Answer 1

f(x) = mx+ b

slope = m = $25 / month

This means that for every month (x) that goes by, the total value of the stock (f(x)) will increase by $25.

y-intercept = b = $525

This is the amount of money in the account at time = 0. This will be equal to the original investment of $525.

f(x) = mx+ b = 25x + 525