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

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

Answer

Explanation:

Step1: Analyze Account A

For Account A with 3% interest rate compounded annually, 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. The growth is exponential because the amount in the account depends on the previous year's amount multiplied by a factor greater than 1.

Step2: Analyze Account B

For Account B, $40$ is added to the account each year. The formula for the amount in the account after $t$ years is $A=P + 40t$, where $P$ is the principal amount. This is a linear relationship since the change in the amount of money in the account is a constant $40$ each year.

Answer:

Account A: exponential; Account B: linear