Of the following four types of savings account plans, which option would yield e...

Choice C is correct. Linear growth is characterized by an increase of a quantity at a constant rate. Exponential growth is characterized by an increase of a quantity at a relative rate; that is, an increase by the same factor over equal increments of time. In choice C, the value of the account increases by 1% each year; that is, the value is multiplied by the same factor, 1.01, each year. Therefore, the value described in choice C grows exponentially.

Choices A and B are incorrect because the rate depends only on the initial value, and thus the value increases by the same amount each year. Both options A and B describe linear growth. Choice D is incorrect; it is also a description of linear growth, as the increase is constant each year.