Problem

State whether the growh (or decay) is linear or exponential, and answer the associated question.
The value of a house is increasing by $\$ 2400$ per year. If it is worth $\$ 160,000$ today, what will it be worth in four years?

Is the increase in value linear or exponential?
exponential
linear

Answer

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Answer

Final Answer: The value of the house in four years will be \(\boxed{169,600}\)

Steps

Step 1 :The problem states that the value of a house is increasing by $2400 per year. If it is worth $160,000 today, we are asked to find out what it will be worth in four years.

Step 2 :First, we need to determine whether the increase in value is linear or exponential. The increase in the value of the house is by a constant amount each year, which is $2400. This suggests that the growth is linear, not exponential. In exponential growth, the amount of increase would be a constant percentage of the current value, not a constant amount.

Step 3 :Now, to find the value of the house in four years, we can simply add the total increase over four years to the current value. The total increase is $2400 per year times 4 years.

Step 4 :Let's calculate this: \(current\_value = 160000\), \(annual\_increase = 2400\), \(years = 4\)

Step 5 :By multiplying the annual increase by the number of years, we get the total increase: \(total\_increase = annual\_increase \times years = 2400 \times 4 = 9600\)

Step 6 :Then, we add the total increase to the current value to get the future value: \(future\_value = current\_value + total\_increase = 160000 + 9600 = 169600\)

Step 7 :Final Answer: The value of the house in four years will be \(\boxed{169,600}\)

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