Problem

Decide whether this situation describes percent growth or fixed-amount growth: A salary increases by \(4\%~\text{each}~\text{year}\).

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What this problem is really about

A fixed percent and a fixed amount can both repeat, but they update values differently. We’ll write one rule that adds the same quantity and another that adds a fraction of the current value, then factor the percent-based update. That form shows whether the dollar change stays constant or changes as the underlying amount changes.

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This is percent growth because 4% means 4 dollars are added each year, which is a steady increase.

This is fixed-amount growth because 4% is a fixed number, so the raise stays the same size each year.

This is percent growth because the raise is 4% of the current salary each year, not the same dollar amount.

This is fixed-amount growth because the salary goes up every year, so the same amount must be added each time.

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Decide whether this situation describes percent growth or fixed-amount growth: A salary increases by \(4\%~\text{each}~\text{year}\).

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