true or false?
Money in a bank account earning compound interest at an annual rate of 5% represents an example of linear growth?
I say True...
1 answer
I would say false. It would grow exponentially because if it were linear, you would earn the same amount of interest every year. When you are talking compound interest, as it continues to be compounded year after year, you earn interest off of the interest you already earned. Sorry if I explained that poorly :p