Answer :
Answer:
A)
For option 1, the type of function is linear because the series of interest earned increases arithmetically in $110 per year.
For option 2, the type of function is exponential because the series of interest earned increases geometrically in $1.09 per year.
b)
The option 1 refers to a simple interest with a function: f(n) = $1000 + $100n
The option 2 refers to a compound interest with a function: f(n) = $1000 * (1.09)ⁿ
c)
After 20 years, she would get:
in option 1, f(20) = $1000 + $110*20 = $3200
in option 2, f(20) = $1000 * (1.09)²⁰ = $5604.41
There is a significant difference between these options because the interest earned (through compound interest) ACCRUES on the principal amount and the accumulated interest of previous periods.
Step-by-step explanation:
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