Question

The value of your house is increasing by 3% each year. If it is worth $100,000 today, what will be its value in 2 years?It is:O A. Linear decayB. Exponential growthO C. Exponential decayOD. Linear growthYour house will be worth $

Answer 1

Given:-

The value of your house is increasing by 3% each year. If it is worth $100,000 today.

To find:-

The value of house in 2 years.

So now the rate of house in the first year is,

`\begin{gathered} (3)/(100)*100000=3*1000 \\ \text{ =3000} \end{gathered}`

So the rate of house in the end of first year is,

`103000`

So now at the second year. we have,

`\begin{gathered} (3)/(100)*103000=3*1030 \\ \text{ =3090} \end{gathered}`

So the rate at end of second year is,

`103000+3090=106090`

So the rate of house will be worth 106090.

So It is a liinear growth.