Question
If you put $10,000 in a savings account for 5 years that pays simple interest of 2.75% annually, which statement BEST describes how the account grows?
Responses
A linear growth, because the account grows by a constant ratelinear growth, because the account grows by a constant rate
B exponential growth, because the account grows by a constant rateexponential growth, because the account grows by a constant rate
C linear growth, because the account grows by a constant proportionlinear growth, because the account grows by a constant proportion
D exponential growth, because the account grows by a constant proportion
Responses
A linear growth, because the account grows by a constant ratelinear growth, because the account grows by a constant rate
B exponential growth, because the account grows by a constant rateexponential growth, because the account grows by a constant rate
C linear growth, because the account grows by a constant proportionlinear growth, because the account grows by a constant proportion
D exponential growth, because the account grows by a constant proportion
Answers
GPT-4o mini
The correct answer is:
A. linear growth, because the account grows by a constant rate.
In a savings account that pays simple interest, the interest is calculated as a fixed percentage of the principal amount each year, leading to a constant increase in the total amount over time. This results in linear growth.
A. linear growth, because the account grows by a constant rate.
In a savings account that pays simple interest, the interest is calculated as a fixed percentage of the principal amount each year, leading to a constant increase in the total amount over time. This results in linear growth.