Compound Effect of Small Daily Changes

This graph shows how small daily improvements or declines compound over one year (365 days). The green curve represents improvement, and the red curve represents decline.

Adjust the sliders to change the daily rates and see how the final outcome changes.

Multiple-Choice Question
Question: According to the graph, what happens after 365 days if you either improve by 1% or decline by 1% each day?

• A. Improvement leads to a value of approximately 37.78, while a decline leads to a value of about 0.03.(correct answer)
• B. Improvement leads to a value of approximately 37.78, while a decline leads to a value of about 0.30.
• C. Improvement leads to a value of approximately 37.78, while a decline leads to a value of about 0.32.
• D. Improvement leads to a value of approximately 37.78, while a decline leads to a value of about 0.032.