Name:___________________________________

Date:____________________

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Linear vs. Exponential Growth

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You are given two options for planning your financial future for the next 20 years:
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Option A:You get $1,000 a year for 20 years.

Option B: You get $1 on the first year, $2 on the second year, $4 on the third year, and so on,
doubling the amount each year until the 20th year.

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1. Which option would you choose? Why?
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2. Create a spreadsheet in Excel for your option. How much money will you have in 20 years?
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3. Create a spreadsheet for the other option. Did you choose the right option? Is there a year
where either option would yield the same amount?

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4. When did the better option being to surpass the other?
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5. Describe the pattern of growth for Option A?

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6. Describe the pattern of growth for Option B?

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7. Use these patterns to create a graph of the functions. Graph the functions on the same plane.
Where on the graph is the point where the two functions meet? When would Option A be a better
choice than Option B?