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1.The price of a computer component is decreasing at a rate of 11 % per year. State whether this decrease is linear or exponential. If the component costs today, what will it cost in three years? Is the decline in price linear or exponential? What will the component cost in three years? 

2. A leprechaun places a magic penny under a girl’s pillow. The next night there are 2 magic pennies under her pillow. Each night the number of magic pennies doubles. How much money will the girl have after 16 nights? 

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3. Decide whether the following statement makes sense (or is clearly true) or does not make sense  (or is clearly  false). Explain your reasoning. I graphed two linear functions, and the one with the greater rate of change had the greater slope. 
Choose the correct answer below. 
A. 
This makes sense. According to the definition of linear functions, the rate of change is equal to the slope of the graph and the greater the rate of change, the greater the slope. 
B. 
This makes sense. According to the definition of linear functions, the initial value is equal to the slope of the graph.  Thus, the rate of change does not relate to the slope. 
C. 
This does not make sense. According to the definition of linear functions, the slope of all linear functions must be the same. 
D. 
This does not make sense. According to the definition of linear functions, the initial value is equal to the slope of the graph.  Thus, the rate of change does not relate to the slope.  

4. The following situation can be modeled by a linear function. Write an equation for the linear function and use it to answer the given question. Be sure you clearly identify the independent and dependent variables. Is a linear model reasonable for the situation described? 
You can rent time on computers at the local copy center for a $7 setup charge and an addition $3.50 for every ten minutes. How much time can be rented for $22. 
Select the correct choice below and fill in the answer box to complete your choice.

A. The independent variable is rental cost (r), in dollars, and the dependent variable is time (t), in minutes. The linear function that models this situation is t= 
           (Simplify your answer. Do not include the $ symbol in your answer.) 
           How many minutes can be rented for $22 

B. The independent variable is time (t), in  minutes, and the dependent variable is rental cost  (r), in dollars. The linear function that models this situation is r=  A linear model is or is not reasonable for this situation?  ​(Simplify your answer. Do not include the​ $ symbol in your​ answer.)

5. Between 2005 and 2009, the average rate of inflation was about 4.5% per year. If a cart of groceries cost $170 in 2005, what did it cost in 2009? 

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