Question

Which relationship exhibits a pattern of exponential growth?*A Income is equal to the square of the number of toys sold each monthB The amount saved is equal to the difference in amount of profit and amount spentC The value of an old coin increases by $80 each yearDThe amount in an account results from 10% interest on $1,000 compounded annually for 5 years

Answer 1

The compound interest formula is :

`A=P(1+(r)/(n))^(nt)`

where A is the amount in the account, P is the principal, r is the interest rate, t is time, and n is the number of times interest is compounded per time 't'. The variables are A and t, that is, P, r, and n are known. Given that t is on the exponent then the relationship represents an exponential growth. Therefore, the correct answer is:

D. The amount in an account results from 10% interest on $1,000 compounded annually for 5 years