Question

state whether the growth (or decay) is linear or exponential, and answer the associated question.

the value of a house is increasing by $2500 per year. if it is worth $120,000 today, what will it be worth in five years?

is the increase in value linear or exponential?

• exponential
• linear

Explanation:

Analyze the rate of change

$$ \text{Rate of change} = \$2500 \text{ per year (constant additive increase)} $$

Classify the growth type

$$ \text{Constant absolute increase per unit time} \implies \text{Linear Growth} $$

Answer:

• exponential
• linear (Correct answer)