1. Kim's case:
We know for our problem that she will gain $25 each year, so if [tex]x[/tex] represents the number of years, she will gain [tex]25x[/tex], where [tex]x[/tex] is the number of years. We also know that her initial investment is $100. If we let [tex]y[/tex] represent the stock value after [tex]x[/tex] years, we can relate the quantities with the following equation:
[tex]y=25x+100[/tex]
We can conclude that the first image is the graph of the equation that represent Kim's situation.
2. Ari's case:
In this case, he is losing $35 per year. Let [tex]x[/tex] represent the number of years. Since we know that losses are represented with a minus sign, he will lose -35x per year. Now, we know for our problem that her initial investment is $400. If we let [tex]y[/tex] represent the stock value after [tex]x[/tex] years, we can relate the quantities with the following equation:
[tex]y=-35x+400[/tex]
We can conclude that the second image is the graph of the equation that represent Ari's situation.
