Question

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

Answer 1

Answer:

The growth is linear.

It will be worth $124,500 in three years.

Step-by-step explanation:

The value of a house is increasing by $1500 per year.

Fixed increase, that is, each year the value increases the same. So the growth is linear.

Value after t years:

The equation has the following format:

$V(t) = V(0) + a*t$

In which V(0) is the current value and a is the yearly increase.

The value of a house is increasing by $1500 per year. It is worth $120,000 today.

Then $V(0) = 120000, a = 1500$

So

$V(t) = V(0) + a*t$

$V(t) = 120000 + 1500*t$

What will it be worth in three years?​

This is V(3).

$V(t) = 120000 + 1500*t$

$V(3) = 120000 + 1500*3$

$V(3) = 124500$

It will be worth $124,500 in three years.