Katherine has run into some good fortune. She recently received a $1000 bonus at work and decided to put it into a savings account. Her choices are a linear account that adds $30 each year or an exponential account that adds 3% interest each year.

Account A – Linear
f (x) = 30x + 1000
Year
x Value
f (x)
1 $1030
2 $1060
3 $1090
4 $1120
Account B – Exponential
g (x) = 1000(1.03)x
Year
x Value
g (x)
1 $1030.00
2 $1060.90
3 $1092.72
4 $1125.51

Question

Katherine has run into some good fortune. She recently received a $1000 bonus at work and decided to put it into a savings account. Her choices are a linear account that adds $30 each year or an exponential account that adds 3% interest each year.

Account A – Linear
f (x) = 30x + 1000
Year
x	Value
f (x)
1	$1030
2	$1060
3	$1090
4	$1120
Account B – Exponential
g (x) = 1000(1.03)x
Year
x	Value
g (x)
1	$1030.00
2	$1060.90
3	$1092.72
4	$1125.51