Question

State whether the growth (or decay) is linear or exponential, and answer the associated question. The value of a house is increasing by $2300 per year. If it is worth $170,000 today, what will it be worth in five years?

Answer 1

The growth of the house value is linear, and it will be worth $181,500 in five years, given it increases by $2,300 annually.

Step-by-step explanation:

The growth of the house's value is linear, as it increases by a constant amount of $2,300 per year. To calculate the house's value in five years, we simply multiply the annual increase by five and add it to the current value.

House value in five years = Current value + (Annual increase × Number of years)

House value in five years = $170,000 + ($2,300 × 5)

House value in five years = $170,000 + $11,500

House value in five years = $181,500