SAT Exam > SAT Questions > Of the following four types of savings accoun...
Start Learning for Free
Of the following four types of savings account plans, which option would yield exponential growth of the money in the account?
- a)Each successive year, 2% of the initial savings is added to the value of the account.
- b)Each successive year, 1.5% of the initial savings and $100 is added to the value of the account.
- c)Each successive year, 1% of the current value is added to the value of the account.
- d)Each successive year, $100 is added to the value of the account.
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Of the following four types of savings account plans, which option wou...
Exponential Growth of Money in the Account
To determine which savings account plan will yield exponential growth of the money in the account, let's evaluate each option and analyze their growth patterns.
a) Option a - Adding 2% of the initial savings each year:
- This option adds a fixed percentage (2%) of the initial savings to the value of the account every year.
- While the amount added each year will increase as the account grows, the growth rate remains constant.
- Therefore, the growth in the account is linear, not exponential.
b) Option b - Adding 1.5% of the initial savings and $100 each year:
- This option adds a fixed percentage (1.5%) of the initial savings and a fixed amount ($100) to the value of the account every year.
- Similar to option a, the growth rate in this case is constant, and the amount added each year will increase as the account grows.
- Again, the growth in the account is linear, not exponential.
c) Option c - Adding 1% of the current value each year:
- This option adds a percentage (1%) of the current value of the account to the value of the account every year.
- The key difference here is that the growth rate is proportional to the current value, not the initial savings.
- As the account grows, the amount added each year increases, leading to exponential growth.
- This is because the account's value is compounding over time, resulting in exponential growth.
d) Option d - Adding $100 each year:
- This option adds a fixed amount ($100) to the value of the account every year, regardless of the account's current value.
- While the amount added each year remains constant, it does not depend on the account's growth.
- Consequently, the growth in the account is linear, not exponential.
Conclusion:
Among the given options, option c, where 1% of the current value is added to the account each year, yields exponential growth of the money in the account. This is because the growth rate is proportional to the current value, leading to compounding and exponential growth over time.
To determine which savings account plan will yield exponential growth of the money in the account, let's evaluate each option and analyze their growth patterns.
a) Option a - Adding 2% of the initial savings each year:
- This option adds a fixed percentage (2%) of the initial savings to the value of the account every year.
- While the amount added each year will increase as the account grows, the growth rate remains constant.
- Therefore, the growth in the account is linear, not exponential.
b) Option b - Adding 1.5% of the initial savings and $100 each year:
- This option adds a fixed percentage (1.5%) of the initial savings and a fixed amount ($100) to the value of the account every year.
- Similar to option a, the growth rate in this case is constant, and the amount added each year will increase as the account grows.
- Again, the growth in the account is linear, not exponential.
c) Option c - Adding 1% of the current value each year:
- This option adds a percentage (1%) of the current value of the account to the value of the account every year.
- The key difference here is that the growth rate is proportional to the current value, not the initial savings.
- As the account grows, the amount added each year increases, leading to exponential growth.
- This is because the account's value is compounding over time, resulting in exponential growth.
d) Option d - Adding $100 each year:
- This option adds a fixed amount ($100) to the value of the account every year, regardless of the account's current value.
- While the amount added each year remains constant, it does not depend on the account's growth.
- Consequently, the growth in the account is linear, not exponential.
Conclusion:
Among the given options, option c, where 1% of the current value is added to the account each year, yields exponential growth of the money in the account. This is because the growth rate is proportional to the current value, leading to compounding and exponential growth over time.
Free Test
FREE
| Start Free Test |
Community Answer
Of the following four types of savings account plans, which option wou...
Choice C is correct. Let I be the initial savings. If each successive year, 1% of the current value is added to the value of the account, then after 1 year, the amount in the account will be I + 0.01I = I(1 + 0.01); after 2 years, the amount in the account will be I(1 + 0.01) + 0.01I(1 + 0.01) = (1 + 0.01)I(1 + 0.01) = I(1 + 0.01)2; and after t years, the amount in the account will be I(1 + 0.01)t. This is exponential growth of the money in the account.
Choice A is incorrect. If each successive year, 2% of the initial savings, I, is added to the value of the account, then after t years, the amount in the account will be I + 0.02It, which is linear growth. Choice B is incorrect. If each successive year, 1.5% of the initial savings, I, and $100 is added to the value of the the account, then after t years the amount in the account will be I + (0.015I + 100)t, which is linear growth. Choice D is incorrect. If each successive year, $100 is added to the value of the account, then after t years the amount in the account will be I + 100t, which is linear growth.
Choice A is incorrect. If each successive year, 2% of the initial savings, I, is added to the value of the account, then after t years, the amount in the account will be I + 0.02It, which is linear growth. Choice B is incorrect. If each successive year, 1.5% of the initial savings, I, and $100 is added to the value of the the account, then after t years the amount in the account will be I + (0.015I + 100)t, which is linear growth. Choice D is incorrect. If each successive year, $100 is added to the value of the account, then after t years the amount in the account will be I + 100t, which is linear growth.
|
Explore Courses for SAT exam
|
|
Similar SAT Doubts
Top Courses for SATView all
Of the following four types of savings account plans, which option would yield exponential growth of the money in the account?a)Each successive year, 2% of the initial savings is added to the value of the account.b)Each successive year, 1.5% of the initial savings and $100 is added to the value of the account.c)Each successive year, 1% of the current value is added to the value of the account.d)Each successive year, $100 is added to the value of the account.Correct answer is option 'C'. Can you explain this answer?
Question Description
Of the following four types of savings account plans, which option would yield exponential growth of the money in the account?a)Each successive year, 2% of the initial savings is added to the value of the account.b)Each successive year, 1.5% of the initial savings and $100 is added to the value of the account.c)Each successive year, 1% of the current value is added to the value of the account.d)Each successive year, $100 is added to the value of the account.Correct answer is option 'C'. Can you explain this answer? for SAT 2025 is part of SAT preparation. The Question and answers have been prepared according to the SAT exam syllabus. Information about Of the following four types of savings account plans, which option would yield exponential growth of the money in the account?a)Each successive year, 2% of the initial savings is added to the value of the account.b)Each successive year, 1.5% of the initial savings and $100 is added to the value of the account.c)Each successive year, 1% of the current value is added to the value of the account.d)Each successive year, $100 is added to the value of the account.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for SAT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Of the following four types of savings account plans, which option would yield exponential growth of the money in the account?a)Each successive year, 2% of the initial savings is added to the value of the account.b)Each successive year, 1.5% of the initial savings and $100 is added to the value of the account.c)Each successive year, 1% of the current value is added to the value of the account.d)Each successive year, $100 is added to the value of the account.Correct answer is option 'C'. Can you explain this answer?.
Of the following four types of savings account plans, which option would yield exponential growth of the money in the account?a)Each successive year, 2% of the initial savings is added to the value of the account.b)Each successive year, 1.5% of the initial savings and $100 is added to the value of the account.c)Each successive year, 1% of the current value is added to the value of the account.d)Each successive year, $100 is added to the value of the account.Correct answer is option 'C'. Can you explain this answer? for SAT 2025 is part of SAT preparation. The Question and answers have been prepared according to the SAT exam syllabus. Information about Of the following four types of savings account plans, which option would yield exponential growth of the money in the account?a)Each successive year, 2% of the initial savings is added to the value of the account.b)Each successive year, 1.5% of the initial savings and $100 is added to the value of the account.c)Each successive year, 1% of the current value is added to the value of the account.d)Each successive year, $100 is added to the value of the account.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for SAT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Of the following four types of savings account plans, which option would yield exponential growth of the money in the account?a)Each successive year, 2% of the initial savings is added to the value of the account.b)Each successive year, 1.5% of the initial savings and $100 is added to the value of the account.c)Each successive year, 1% of the current value is added to the value of the account.d)Each successive year, $100 is added to the value of the account.Correct answer is option 'C'. Can you explain this answer?.
Solutions for Of the following four types of savings account plans, which option would yield exponential growth of the money in the account?a)Each successive year, 2% of the initial savings is added to the value of the account.b)Each successive year, 1.5% of the initial savings and $100 is added to the value of the account.c)Each successive year, 1% of the current value is added to the value of the account.d)Each successive year, $100 is added to the value of the account.Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for SAT.
Download more important topics, notes, lectures and mock test series for SAT Exam by signing up for free.
Here you can find the meaning of Of the following four types of savings account plans, which option would yield exponential growth of the money in the account?a)Each successive year, 2% of the initial savings is added to the value of the account.b)Each successive year, 1.5% of the initial savings and $100 is added to the value of the account.c)Each successive year, 1% of the current value is added to the value of the account.d)Each successive year, $100 is added to the value of the account.Correct answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Of the following four types of savings account plans, which option would yield exponential growth of the money in the account?a)Each successive year, 2% of the initial savings is added to the value of the account.b)Each successive year, 1.5% of the initial savings and $100 is added to the value of the account.c)Each successive year, 1% of the current value is added to the value of the account.d)Each successive year, $100 is added to the value of the account.Correct answer is option 'C'. Can you explain this answer?, a detailed solution for Of the following four types of savings account plans, which option would yield exponential growth of the money in the account?a)Each successive year, 2% of the initial savings is added to the value of the account.b)Each successive year, 1.5% of the initial savings and $100 is added to the value of the account.c)Each successive year, 1% of the current value is added to the value of the account.d)Each successive year, $100 is added to the value of the account.Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of Of the following four types of savings account plans, which option would yield exponential growth of the money in the account?a)Each successive year, 2% of the initial savings is added to the value of the account.b)Each successive year, 1.5% of the initial savings and $100 is added to the value of the account.c)Each successive year, 1% of the current value is added to the value of the account.d)Each successive year, $100 is added to the value of the account.Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Of the following four types of savings account plans, which option would yield exponential growth of the money in the account?a)Each successive year, 2% of the initial savings is added to the value of the account.b)Each successive year, 1.5% of the initial savings and $100 is added to the value of the account.c)Each successive year, 1% of the current value is added to the value of the account.d)Each successive year, $100 is added to the value of the account.Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice SAT tests.
|
|
Explore Courses for SAT exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup