When a child is born, her grandfather decides to $300 in an account that earns inter
plans to make no other deposits of withdrawals for 18 years. When the child turns 18
the money in the account will be a birthday gift. The grandfather is choosing between
options:
• Option 1: An account that grows by 7.5% each year.
Option 2: An account thật grows by $35 each year.
Which option will result in a better 18th birthday gift? Explain your reasoning.