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 negative linear function
a negative linear function

a positive linear function
a positive linear function

a negative quadratic function
a negative quadratic function

a positive exponential function

Answer 1

The type of function that best models the amount of money Quavarius has in his account is a positive exponential function.

In this situation, Quavarius is making regular monthly deposits into his account, which earns compound interest. The compounding effect results in an increasing amount of money in the account that grows at an exponential rate rather than linearly. Thus, the correct response is a positive exponential function.