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Question of the Day: SAT Mathematics

Sarah has created an equation to model the amount of money in her savings account. Her net income is $50,000 per year, and her expenses each month are $2,000, so she models her savings at the end of each month using the equation:

In this equation,  represents the $21,500 she had in savings when she first began tracking her savings this way, and  represents the number of months that it has been since she started. What is the meaning of the number  in this calculation?

After 12 months she expects to hit her savings goal

She divides by 12 to convert her annual salary to a monthly amount

12 is the number of months that she has been working at her current job

Her goal is to earn 12 times as much money as she spends

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