Question

Lincoln’s parents invested $5,000 in a college savings account when he was born. If the account has a growth rate of 12%, the situation can be modeled by the equation a(t)=5,000(1.12)t
, where a is the amount after t years. Which one of the following statements is true about the graph of the function?

(1 point)
Responses

As t increases, a increases slowly at first and then quickly.
As t increases, a increases slowly at first and then quickly.

As t increases, a increases quickly at first and then slowly.
As t increases, a increases quickly at first and then slowly.

As t increases, a decreases slowly at first and then quickly.
As t increases, a decreases slowly at first and then quickly.

As t increases, a decreases quickly at first and then slowly.
As t increases, a decreases quickly at first and then slowly.
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Answer 1

As t increases, a increases slowly at first and then quickly.

Reason: a(t) = 5000(1.12)^t is exponential growth (base > 1), so the amount grows faster as t gets larger — the growth rate accelerates over time.