A bank teller uses the equation Y = 1.30x − 1.50 to exchange US dollars into euros, where Y is the euro amount and X is the US dollar amount. What is the best interpretation of –1.50 in the equation?
- The bank charges a fee of 1.50 euros for the exchange
- The bank gives a bonus of 1.50 euros
- The exchange rate is 1.50 dollars per euro
- None of these
Explanation
The constant –1.50 represents a fixed service charge deducted from the total euros received.
This fee is independent of the amount of US dollars exchanged.
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