Explain the difference in how you would model the following situations. Person A puts $1000 in a safe in his house and puts an additional $50 per year.
Person B puts $1000 in an investment that earns 5% per year.

Why is one exponential and the other linear? How would their graphs compare? How would their values compare over time?

Question

Explain the difference in how you would model the following situations. Person A puts $1000 in a safe in his house and puts an additional $50 per year.
Person B puts $1000 in an investment that earns 5% per year.

Why is one exponential and the other linear? How would their graphs compare? How would their values compare over time?

amistre64 · Answer

one is exponential because it uses the amount already in the account to determine the value added; the other uses just an equal sum added each year regardless of what the balance is...

amistre64 · Answer

one graph is a straight line with a marginal slope upwards; the other is a curve that increses upward the further you go in time the higher it bends

amistre64 · Answer

does that make sens eto you?

anonymous · Answer

Yes it does. Thank you amistre :)

amistre64 · Answer

youre welcome :)