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Problem-Solving and Data AnalysisMediumRecognising exponential growth

Problem-Solving and Data Analysis practice question

A quantity increases by 5% every year. Which type of function best models the quantity over time, and why?

  1. A. Exponential, because the quantity is multiplied by the same factor (1.05) each year.Correct
  2. B. Linear, because the quantity increases by the same amount each year.
  3. C. Linear, because 5% is a constant.
  4. D. Quadratic, because the increase gets larger each year.

Answer: A. Exponential, because the quantity is multiplied by the same factor (1.05) each year.

A percent increase multiplies the current amount by 1.05 every year — a constant factor, which is exponential growth.

Why the other answers are wrong

B. Linear, because the quantity increases by the same amount each year.
The AMOUNT added grows each year (5% of a larger number), so it isn't a constant amount.
C. Linear, because 5% is a constant.
The percent is constant, but a constant percent means a constant FACTOR, not a constant amount — that's exponential.
D. Quadratic, because the increase gets larger each year.
The increase does grow, but by a constant ratio, which is exponential, not quadratic.

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