Jason plans to retire in 15 years. His current household expenses are 98,000 per year he estimates that when he would tires, he will no longer have 4750 in monthly mortgage payment, 7300 in annual commuting expenses in 350,000 annual budget 401K Contributions. However, he does expect that his health care cost will rise by 6000 per year and he’s entertaining expenses to total $9150 each year. What will be his estimated retirement expenses, in total dollars, if using the adjusted expense message? answer options:

$4750
$61,150
$67,450
$13,850

answer: c, the green line

step-by-step explanation:

there is no black line, eliminate b.

simple interest implies periodic payments, but the red line shows no payments, eliminate d.

simple interest has equal payments. if paid say every day, the graph is about a straight line (actually a stairstep).

the yellow line is not straight, eliminate a.

check: the green line is straight, answer is c.

simple interest with positive interest rate gives a straight line sloping up to the right. green line:

g(t) = $100 + ($200-$100) ÷ (20 years) × (t years)

= $100 + (4%/year) × ($100)(t years)

incidentally, the yellow line curving upward represents continuously compounded interest

y = $100 × 2^(t years / (14 assuming the yellow line hits $200 at 14 years. 2^0 is 1, so y(0) = $100; 2^(14/14) is 2, so y(14) = $200.