Decide whether this situation describes percent growth or fixed-amount growth: A streaming service raises its monthly subscription price by \(6\%~\text{each}~\text{year}\).

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This is percent growth because the 6% is always found from the original subscription price, so the same dollar increase repeats.

This is fixed-amount growth because 6% means 6 dollars are added each year.

This is percent growth because each year the price increases by 6% of its current value.

This is fixed-amount growth because the price goes up every year, so the same number of dollars is added each time.

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Curriculum context

Course: Math I
Standard: F-LE.1.c
Category: Functions
Domain: Linear, Quadratic, and Exponential Models
Objective: Recognize constant percent growth or decay as evidence for an exponential model.
Problem type: Identify percent growth versus fixed-amount growth