You start with $3 and save $1 each month. You save $3 the first month, and then each month the amount triples. Your total savings is 3 times the number of months multiplied by itself.
A. Linear
B. Quadratic
C. Exponential
You start with $3 and save $1 each month. You save $3 the first month, and then each month the amount triples. Your total savings is 3 times the number of months multiplied by itself. What type of growth is represented by this savings plan?
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The correct answer is C. Exponential.
Here’s why: In the first month, you save $3, and then each month the amount you save triples. This shows that your savings growth is not constant; instead, it increases rapidly as you save more. The savings formula based on tripling each month indicates an exponential growth pattern, as opposed to linear (constant addition) or quadratic (increasing by increments that rise, forming a parabola).