Exponential growth

Explanation and Best Answer

Option 1) $1000 a year for twenty years

This would give you $20,000.

Option 2) the exponential growth function y = 2^x

2²⁰ = $1, 048,576

This question demonstrates the trait that we keep coming back to: exponential growth might not start out with much (1 and 2 dollars in the first years), but eventually its rate of growth is humongous!

Below is a picture of the two graphs in question. Option 1 can be modeled of the graph of y = 2x, a linear equation. On the other hand, the graph of y = 2^x, an exponential growth equation, quickly surpases the line.