Question

The following graph represents a retirement savings account after the owner of the account begins withdrawing 5% each year.

1) the amount of money in the account after the owner starts withdrawing is an example of exponential growth.
2) there was $500,000 in the account when the owner started making withdrawals.
3) after 10 years, there is exactly $300,000 left in the account.
4) the amount the owner withdrawals each year is the same.
5) the y-intercept represents the amount of money in the account when the owner started making withdrawals,

Answer 1

Options 2 3 and 5 are all correct

Answer 2

Options 2 and 5 are true.

Explanation:

We are given that,

The graph represents the amount in the savings account after the owner withdraws the money each year.

According to the options, we have,

1. As time increases, the amount of money in the savings account is decreasing. So, the function is an example of exponential decay.

2. Also, the initial amount of money in the account is 500,000 dollars.

3. After 10 years, the amount in the account is less than 300,000 dollars.

4. Now, the amount withdrawn by the owner is decreasing exponentially and so cannot be same each year.

5. Further, the y-intercept is the point when y= 500,000 dollars, which is the amount of money in the account when the owner started withdrawing.

Hence, we get that,

Options 2 and 5 are true.