# 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:

- the first bank offers you $50 each year, every year.
- the second bank offers you 5% interest on your balance at the end of each year.

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

Year 0

Which piggy bank would you rather have?

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

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