A rental car company purchases an automobile for $20,800. The automobile requires an average cost of $7.45 per day in maintenance. The automobile rents for $65.00 a day. The profit after t days, is given by the function . Find the linear function .

Question

A rental car company purchases an automobile for $20,800. The automobile requires an average cost of $7.45 per day in maintenance. The automobile rents for $65.00 a day. The profit after t days,  is given by the function  . Find the linear function  .

Quizplus · Accepted Answer

The profit after t days is given by:
Profit(t) = Revenue(t) - Cost(t)
Revenue(t) = Rental price x number of days rented = $65t
Cost(t) = Purchase cost + Maintenance cost = $20,800 + $7.45t
Therefore, 
Profit(t) = $65t - ($20,800 + $7.45t) = $57.55t - $20,800
This is a linear function with slope $57.55 and y-intercept of $-20,800. So the linear function is:
Profit(t) = $57.55t - $20,800, which is option C.

A Rental Car Company Purchases an Automobile for $20,800