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 exponential function
a positive exponential function

a negative quadratic function
a negative quadratic function

a negative linear function
a negative linear function

a positive linear function

Answer 1

The situation described involves Quavarius depositing a fixed amount of money each month into an account that earns interest compounded monthly. This scenario can be modeled by a future value of an annuity formula, which takes into account both the monthly deposits and the interest earned on those deposits.

Since the total amount in the account grows over time due to the compounding interest and the regular deposits, the function that best represents the amount of money in his account is not linear or quadratic. Instead, it is best modeled by an exponential function due to the nature of compounding interest.

Thus, the correct answer is:

a positive exponential function