The answer is not 3 the answer is 4

What is the answer to?

In option one, the investment grows by a constant of 100 per year, so it can be modeled by a linear equation.

f1(n)=1000+100n

In option two, the investment increases by a common ratio of 1.1, or increases by 10%, each year, and can thus be modeled by an exponential equation.

f2(n)=1000(1.1^n)

The exponential function will grow much larger versus the linear function because the rate of change increases every year...after 20 years

f1(20)=1000+100(20)=$3000

f2(20)=1000(1.1^20)=$6727.50  (to nearest cent)

So the exponential function is over 242% more than the linear function over this time period.