Question

Select the scenarios that correctly represent the given graph.

Answer 1

We have to write down some values that we can see from the graph. At x=0, the value is 100. At x=1, the y-value is 150 and at x=2 the graph has a value of a little over 200. We see also that this is an exponential graph, so we might assume that there is a specific ratio from each x-value to the next. We get that this ratio is 150/100=1.5. Hence, the quantity increases by 1.5 or 150% every time we add 1 to the x-coordinate. The 2 first sentences are correct. If an amount increases by 50% after a year, at the end of the year there is 150% of it (we need to add the initial capital which is 100%). Thus the graph here has as x-axis years and as y-axis money. The same concept holds for the 2nd sentence. The 3rd sentence is wrong because the value here is not multiplied but added. This would produce a linear graph. Sentence 4 has the wrong ratio; if that was true, then at x=1 we would have 200 oranges, not 150. For the same reason option 5 is wrong; 150*100=15000, not 150.