Question

Sebastian deposits $100,000 in a local bank that will pay out 5% interest every year. Is this example linear or exponential?

Answer 1

this is a linear because it goes up at the rate of 5%

Answer 2

This is an example of exponential.

Explanation:

Linear function :

• The function increase or decrease by a particular contant value.
• The rate of change of the function is  a constant.

Exponential function :

• The function increase or decrease by a particular percent.

• The rate of change of the function is not constant.
• It is basically represented by percentage or multiplicative growth or decay rate.

Given : Sebastian deposits $100,000 in a local bank that will pay out 5% interest every year.

Since the rate of growth is 5% , therefore this situation represents exponential.

Thus , this is an example of exponential.

# Learn more :

What is difference between linear increae and exponential increase?

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