elisa puts $1,000 into each of 2 bank accounts. account a: 3% interest rate, compounded annually, which is…

elisa puts $1,000 into each of 2 bank accounts. account a: 3% interest rate, compounded annually, which is growth account b: $40 bonus added to the account each year, which is growth done

elisa puts $1,000 into each of 2 bank accounts. account a: 3% interest rate, compounded annually, which is growth account b: $40 bonus added to the account each year, which is growth done

Answer

Explanation:

Step1: Identify growth type for Account A

Compound - interest is exponential growth. The formula for compound - interest is $A = P(1 + r)^t$, where $P$ is the principal amount, $r$ is the annual interest rate (as a decimal), and $t$ is the number of years. For Account A with $P=$1000$, $r = 0.03$, and $t$ years, the amount $A$ grows exponentially over time.

Step2: Identify growth type for Account B

Adding a fixed amount ($$40$) each year is linear growth. If the initial amount is $P = 1000$ and we add $b = 40$ each year, the amount $A$ in the account after $t$ years is given by the linear formula $A=P + bt=1000 + 40t$.

Answer:

Account A: exponential; Account B: linear