Warehouse Club Membership Suppose that the annual fee for a warehouse club membership is $50 and that the reward rate on club purchases for the year is 1.6%.
Then the actual annual cost of a membership y, in dollars, for an amount of annual
club purchases x, in dollars, can be modeled by the following linear equation.
y = 50 – 0.016x
(a) Determine the actual annual cost of the membership if club purchases for the
year are $1500.
(b) What amount of club purchases would reduce the actual annual cost of the
membership to $0?
(c) If club purchases for the year exceed $3125, how is the actual annual member- ship cost affected?