Quavarius sets up an investment account that guarantees a 5% interest compounded monthly. He deposits $100 into his account each month. Which type of function best models the amount of money Quavarius has in his account?(1 point)

Question

Responses

a positive linear function
a positive linear function

a negative linear function
a negative linear function

a positive exponential function
a positive exponential function

a negative quadratic function

Answer 1

The situation described involves Quavarius depositing a fixed amount of money every month into an investment account that earns interest compounded monthly. This creates a scenario where both the contributions and the interest accumulation contribute to the growth of the account balance.

Since the account balance does not grow linearly but rather increases at an increasing rate due to the compounding interest, the growth is best described by a positive exponential function. Thus, the correct answer is:

a positive exponential function