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Ethan and Evan are twins. They each deposit $3,000 into separate bank accounts. Their accounts each accrue interest annually. Explain whether each account can best be modeled by a linear or an exponential function and How much higher of a balance would Evan have after 5 years than Ethan?

Respuesta :

Each account can be modelled by an exponential function

At the end of 5 years, Evans and Ethan will have the same balance since they deposited the same amount at the same interest rate

Compound Interest

The amount deposited is the principal, P

P  =  $3000

The account accrues interest annually

This means that the amount is compounded annually

Exponential Function

The amount after 5 years is given by the formula shown below:

[tex]A=P(1+\frac{r}{n})^{nt} [/tex]

The above equation represents an exponential function

At the end of 5 years, Evans and Ethan will have the same balance since they deposited the same amount at the same interest rate

Learn more on compound interest here: https://brainly.com/question/24924853

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