Determine Whether the Growth (Or Decay)is Linear or Exponential, and Answer

question 96

Multiple Choice

Determine whether the growth (or decay) is linear or exponential, and answer the associated question.
-The value of your house is rising by $24,731 per year. If it is worth $199,401 today, what will it be worth in three years?

• A)Exponential; $283,176.32
• B)Linear; $273,594.00
• C)Linear; $622,934.00
• D)Exponential; $672,396.00

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Definitions:

Annually

A term that pertains to an event or item that occurs once every year.

Anticipated Growth

Anticipated growth refers to the expected increase in size, value, or importance of something, such as a company's revenue or an economy's GDP, over a future period.

Estimated Dividend

The predicted amount that a company is expected to pay out in dividends to its shareholders in the near future.

Constant Growth Rate

In finance, it refers to the steady rate at which a company’s dividends or earnings are expected to grow indefinitely.