PLS HELP QUICK PLS PLS 13 POINTS
A bank offers two different investment options.

Option 1 pays simple interest of 3% per year, meaning that each year, the balance increases by 3% of the initial deposit.

Option 2 pays compound interest of 2.4% compounded monthly, meaning that each month, the balance increases by 1/12 of 2.4% of the previous month's balance.

Which type of function can be used to model each option?

A:Option 1 is linear because 3% is added to the balance each year.

Option 2 is linear because 0.2% is added to the balance each month.

B:Option 1 is linear because 3% of the initial investment is added to the balance each year.

Option 2 is exponential because the balance is multiplied by 100.2% each month

C:Option 1 is exponential because the balance is multiplied by 103% each year.

Option 2 is exponential because the balance is multiplied by 100.2% each month

D:Option 1 is exponential because the balance is multiplied by 103% each year.

Option 2 is linear because 0.2% is added to the balance each month.