Question

The graph below shows the value of a $100 deposited into three different

accounts over a period of 20 years. Which of the lines represents the value of
the account earning simple interest?
300
250
200
150
100
50
0
OA. Red
12
9 10 11 12 13 14 15 16 17 18 19 20 21

Answer 1

The line representing the account earning simple interest is the green line since it keeps the same slope for the entire period of 20 years, which means that the interest earned each year is constant. The other two lines, blue and red, have curving slopes, indicating that interest is calculated based on the amount of money in the account each year (compounded interest).