To determine if an account is growing by the same number of dollars each year, we need to analyze its growth pattern over a specific period, typically two or more consecutive years. If the growth remains consistent, it indicates that the account is growing by the same amount each year.
For example, let's assume the following annual growth for an account over three years:
Year 1: $10,000 initial balance + $2,000 growth = $12,000 final balance
Year 2: $12,000 initial balance + $2,000 growth = $14,000 final balance
Year 3: $14,000 initial balance + $2,000 growth = $16,000 final balance
In this case, the account grows by $2,000 each year, demonstrating a consistent growth pattern. However, if the growth amount varies between years, the account is not growing by the same number of dollars each year.
