Determine whether the growth (or decay)is linear or exponential, and answer the associated question.
-The price of computer memory is decreasing at a rate of 14% per year. If a memory chip costs $90 today, what will it cost in two years?
A)Linear; $64.80
B)Exponential; $66.56
C)Linear; $115.20
D)Exponential; $77.84

Question

Quizplus · Accepted Answer

The price decrease is exponential because it decreases by a percentage (14%) each year, not by a fixed amount. To find the cost in two years: $90 * (0.86)^2 = $66.56.

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