Answer:
D. Method 1 is exponential and Method 2 is linear
Explanation:
D is the correct answer.
Method 1 is growing at a constant rate every year: 1.7%/yr. The expression that tells us the value after x years is:
f(x) = ($1,237)*(1 + 0.017)^x, where x is the years since the $1,237 was documented to be in the student's account (at x = 0). This is an exponential equation.
Method 2 doesn't tell us that there is any interest being paid on the account, so we must assume zero interest (unlikely, but perhaps not unrealistic these days). But we know the student adds at a rate of $8/month. The expression that will tell us the balance after x months is:
f(x) = $8x + $285, where x is the months after the initial; deposit. This is a linear equation.
Method 1 is exponential and Method 2 is linear: D.