MathBench > Population Dynamics

Exponential Growth and Decay

Two bank accounts...

Since exponential growth is truly a universal model, we’ll start with something that is intuitive for most people – money in your bank account. 

Let’s say you have $1000 to deposit, and you have a choice of two savings accounts:

Use the applet below to see what will happen to each account's balance. Which account would you choose?

Year 0

Additive account

+ $50 / year

Green piggy bank


Exponential Account

+ 5% / year

Red piggy bank


Which piggy bank would you rather have?

To see the true power of exponential growth, keep going until year 30 or so...