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NSWMaths Standard 2Syllabus dot point

How do we decide whether a real situation is best modelled by a linear, quadratic, exponential or reciprocal function?

Compare linear and non-linear models of real-world data and select the most appropriate model

A focused answer to the HSC Maths Standard 2 dot point on selecting an appropriate model. The four model shapes shown side by side, the difference-ratio-product diagnostic tests, when a non-linear model fits better than a straight line, and worked Australian examples for choosing the right model.

Reviewed by: AI editorial process; not yet individually human-reviewed

Have a quick question? Jump to the Q&A page

What this dot point is asking

NESA wants you to look at a table or graph of data and decide what kind of relationship it shows. Is it linear (a straight line), or is it one of the three standard curved shapes: quadratic, exponential, or reciprocal? Once you decide, you write the matching model. The diagnostic rules (the quick checks that tell the shapes apart) are short and worth memorising. A "which model fits, justify your answer" question almost always just wants you to run one of three quick tests on a table.

The deeper skill is knowing when a straight line is not enough. Many real quantities look roughly straight over a short stretch but are really curved. A population growing by a constant percentage is not growing by a constant amount. A fixed cost shared among more people falls fast at first and then levels off. You earn full marks by spotting that a non-linear (curved) model fits better and saying why. A "looked like a line" guess does not.

The answer

The four model shapes at a glance

Each model has a signature shape and a signature diagnostic. The panels below put all four on identical axes so the differences are visible side by side. The data points sit exactly on each curve; the caption names the test that confirms it.

Linear. A straight line, y=mx+cy = mx + c. Equal steps in xx produce equal steps in yy, so the first differences are constant. This is the only model with no curvature at all.

Linear model shapeA straight accent line rising left to right, y = 7x + 10, with evenly spaced data points sitting exactly on it. Equal steps along x give equal steps in y.xy0246810255075100Lineary = 7x + 10Linear: y = mx + c. Equal x-steps give EQUAL y-steps, so thefirst differences are constant (here +14 each step). A straight line.

Quadratic. A single smooth bend (a parabola), y=ax2+bx+cy = ax^2 + bx + c. The first differences are not constant, but the differences of those differences, the second differences, are constant. One turning point is the visual tell.

Quadratic model shapeAn upward-opening accent curve, y = ax squared plus bx plus c, steepening as x increases, with data points sitting on it. First differences grow while second differences stay constant.xy0246810255075100Quadraticy = ax² + bx + cQuadratic: y = ax² + bx + c. First differences GROW, but thesecond differences (the differences of those) are constant. One bend.

Exponential. A curve that climbs slowly then ever more steeply (or, for decay, falls fast then flattens), y=abxy = ab^x. Equal steps in xx multiply yy by the same factor, so the ratios of consecutive yy values are constant (and that constant ratio is the base bb).

Exponential model shapeAn accent curve that rises slowly then sharply, y = a times b to the power x, with data points on it. Each equal x-step multiplies y by the same constant factor, so ratios are constant.xy0246810255075100Exponentialy = a·bˣExponential: y = a·bˣ. Each x-step MULTIPLIES y by the samefactor, so consecutive ratios are constant (here ×1.36 each step).

Reciprocal. A curve that falls steeply then flattens towards the axes, y=kxy = \dfrac{k}{x}. As xx rises, yy shrinks towards zero, and the product xyxy is constant (it always equals kk). This is the shape of a fixed total shared among more and more parts.

Reciprocal model shapeA falling accent curve, y = k over x, dropping steeply then flattening towards the horizontal axis, with data points on it. The product of x and y stays constant.xy0246810255075100Reciprocaly = k / xReciprocal: y = k / x. As x rises, y falls towards zero. The PRODUCTx times y stays constant (here 120). A fixed total shared out.

The diagnostic checklist

Given a table of (x,y)(x, y) pairs with xx equally spaced, run these in order until one works. Each is a one-line calculation.

  1. First differences yi+1yiy_{i+1} - y_i. If they are constant, the model is linear, and that constant is the gradient mm.
  2. Ratios yi+1yi\dfrac{y_{i+1}}{y_i}. If they are constant, the model is exponential, and that constant is the base bb.
  3. Products xiyix_i \, y_i. If they are constant, the model is reciprocal, and that constant is kk.
  4. If none of the above, try second differences (differences of the first differences). If those are constant, the model is quadratic.

The order matters. Linear is the simplest model, and exponential and reciprocal are the most common curved cases in Standard 2. So run the quick test first and stop as soon as something is constant.

When a non-linear model fits better than a line

A straight line is the right answer only when the change is by a constant amount each step. The moment the change is by a constant percentage, a constant product, or accelerates, a non-linear model fits better, and a question often hinges on you seeing this:

  • Constant percentage change means exponential, not linear. A population growing 10%10\% a year adds more people every year (because 10%10\% of a bigger number is bigger), so the increments grow and the first differences are not constant. A line would undershoot in later years; the exponential captures the accelerating climb. The same goes for compound interest and depreciation.
  • A fixed total shared out means reciprocal, not linear. Splitting a $50 bill among more friends, or a fixed-length trip taking less time at higher speed, gives a cost (or time) that falls fast at first and then barely changes. A line cannot bend like that, and would wrongly go negative; the reciprocal flattens towards the axis exactly as the data does.
  • An accelerating, single-bend rise means quadratic. Area against side length, or a revenue-versus-price curve with one peak, bends once. First differences grow steadily (constant second differences), which a straight line cannot reproduce.
  • Watch the danger of a short window. Over three or four points many curves look almost straight, so a "looks linear" eyeball is unreliable. The numerical test is what decides it: compute the differences and the ratios and let the constant one win.

Shape clues from a graph

If you are given a graph rather than a table, the shape narrows it down quickly:

  • Straight line: linear.
  • Single smooth bend with one turning point: quadratic.
  • Rises slowly then very steeply (or falls fast then flattens) with no turning point: exponential.
  • Two branches hugging both axes, never crossing them: reciprocal.

For a rising curve with no turning point, it is hard to tell quadratic from exponential by eye. When in doubt, go back to the table test (second differences versus ratios).

Practical clues from context

The wording of a problem usually hints at the model before you compute anything:

  • A flat fee plus a charge per unit: linear.
  • Compound growth or decay (interest, depreciation, a population growing by a fixed percentage): exponential.
  • A fixed total split among a variable number of parts (a bill shared, fuel for a fixed trip, time for a fixed job): reciprocal.
  • A projectile, an area, or a quantity to be maximised at one peak: quadratic.

When two models seem to fit

Sometimes a small set of data fits more than one model fairly well. The question usually steers you. For example, "the growth percentage is constant" points straight at exponential. If you must compare the fit yourself, work out the residuals (a residual is the gap between a data point and the value the model predicts). The better model has smaller residuals across the whole set of data, not just at one or two points. When the fits are very close, pick the simpler model, because the right model is the simplest one that explains the data.

How exam questions ask about choosing a model

The phrasings are a small, recognisable set:

  • "Which model best fits, linear or exponential? Justify." Run the first-difference test and the ratio test, state which one is constant, and conclude. Show both tests so the justification is complete.
  • "What type of relationship / model does this table show?" Work down the diagnostic checklist (differences, ratios, products) and name the first constant one, then write the equation with its constant.
  • "Write the model / equation." After identifying the type, read the constant off your test: mm from the difference, bb from the ratio, kk from the product, then find the remaining parameter from a known point.
  • "Explain why a linear model is not appropriate here." Point to the failed test: the first differences are not constant, so the data is not linear, and name what is constant instead.
  • "Use your model to predict ..." Substitute the required value, but flag if it is far outside the data (extrapolation is risky, especially for exponentials, which grow without bound).
  • "Sketch the data and state the model." Plot the points, judge the shape against the four signatures above, then confirm with the matching numerical test.

Exam-style practice questions

Practice questions written in the style of NESA exam questions on this dot point, with worked answer explainers. The year tag is the paper they imitate, not the source.

2022 HSC-style4 marksA table shows population data over five years. Year 00 has 10001000, year 11 has 11001100, year 22 has 12101210, year 33 has 13311331, year 44 has 14641464. Which model best fits, linear or exponential? Justify your answer and write the model.
Show worked answer →

For linear, check first differences: 11001000=1001100 - 1000 = 100, 12101100=1101210 - 1100 = 110, 13311210=1211331 - 1210 = 121, 14641331=1331464 - 1331 = 133. Differences are increasing, not constant, so not linear.

For exponential, check ratios: 11001000=1.10\frac{1100}{1000} = 1.10, 12101100=1.10\frac{1210}{1100} = 1.10, 13311210=1.10\frac{1331}{1210} = 1.10, 146413311.10\frac{1464}{1331} \approx 1.10. Ratios are constant at 1.101.10, so the model is exponential.

Model: P=1000(1.10)tP = 1000 (1.10)^t. This is 10%10\% growth per year.

Markers reward both first-difference and ratio checks, the conclusion that ratios are constant, and the model with correct base 1.101.10.

2021 HSC-style3 marksA table shows fuel cost for a trip of fixed length at different speeds. 4040 km/h costs $18, 6060 km/h costs $12, 8080 km/h costs $9, 120120 km/h costs $6. What type of model fits this data?
Show worked answer →

Check the product of speed and cost: 40×18=72040 \times 18 = 720, 60×12=72060 \times 12 = 720, 80×9=72080 \times 9 = 720, 120×6=720120 \times 6 = 720.

The product is constant at 720720, so the relationship is inverse: cost ×\times speed =720= 720, that is C=720sC = \frac{720}{s}.

Markers reward checking the product, identifying it as constant, and writing the reciprocal model with the constant explicitly.

Practice questions

Original practice questions graded from foundation to exam level, each with a full worked solution. Try them before revealing the solution.

foundation3 marksA gym records the total cost of membership, in dollars, after tt months: month 00 is $60, month 11 is $95, month 22 is $130, month 33 is $165, month 44 is $200. Show that a linear model fits, write the equation, and use it to find the total cost after 1010 months.
Show worked solution →
Test the first differences
The tt values are equally spaced, so subtract each cost from the next: 9560=3595 - 60 = 35, 13095=35130 - 95 = 35, 165130=35165 - 130 = 35, 200165=35200 - 165 = 35.
Conclude the model
The first differences are constant at 3535, so the data is linear and the gradient is m=35m = 35 dollars per month.
Find the intercept and write the equation
At t=0t = 0 the cost is $60, so c=60c = 60 (the joining fee). The model is C=35t+60C = 35t + 60.
Predict at t=10t = 10
Substitute: C=35×10+60=410C = 35 \times 10 + 60 = 410.
State the answer
A constant first difference of $35 confirms a linear model C=35t+60C = 35t + 60, and after 1010 months the total cost is $410.00.
foundation3 marksA car's value, in dollars, is recorded each year: year 00 is $30\,000, year 11 is $25\,500, year 22 is $21\,675, year 33 is $18\,423.75. Identify the model, write its equation, and find the value after 55 years.
Show worked solution →
Test the ratios
The first differences (4500-4500, then 3825-3825, then 3251.25-3251.25) are not constant, so try ratios of consecutive values: 2550030000=0.85\frac{25\,500}{30\,000} = 0.85, 2167525500=0.85\frac{21\,675}{25\,500} = 0.85, 18423.7521675=0.85\frac{18\,423.75}{21\,675} = 0.85.
Conclude the model
The ratio is constant at 0.850.85, so the data is exponential with base b=0.85b = 0.85. Because 10.85=0.151 - 0.85 = 0.15, the car loses 15%15\% of its value each year.
Write the equation
The starting value is $30,000, so V=30000(0.85)tV = 30\,000(0.85)^t.
Predict at t=5t = 5
Substitute: V=30000×0.855=13311.16V = 30\,000 \times 0.85^5 = 13\,311.16 (to the nearest cent).
State the answer
A constant ratio of 0.850.85 confirms exponential decay V=30000(0.85)tV = 30\,000(0.85)^t, and after 55 years the car is worth $13,311.16.
foundation2 marksA water tank is being filled. The volume, in litres, is recorded each minute: minute 00 is 5050, minute 11 is 5858, minute 22 is 6666, minute 33 is 7474. Show that a linear model fits, then use it to find the volume after 66 minutes.
Show worked solution →
Test the first differences
The minute values are equally spaced, so subtract each volume from the next: 5850=858 - 50 = 8, 6658=866 - 58 = 8, 7466=874 - 66 = 8.
Conclude the model
The first differences are constant at 88, so the data is linear with gradient m=8m = 8 litres per minute, and at minute 00 the volume is 5050, so the model is V=8t+50V = 8t + 50.
Predict at t=6t = 6
Substitute: V=8×6+50=98V = 8 \times 6 + 50 = 98.
State the answer
A constant first difference of 88 confirms the linear model V=8t+50V = 8t + 50, so after 66 minutes the tank holds 9898 litres.
foundation2 marksA post is being shared online and the number of shares is counted each hour: hour 00 is 100100, hour 11 is 300300, hour 22 is 900900, hour 33 is 27002700. Identify the type of model and write its equation.
Show worked solution →
Try first differences first
300100=200300 - 100 = 200, 900300=600900 - 300 = 600, 2700900=18002700 - 900 = 1800. These are not constant, so the data is not linear.
Test the ratios
Divide each count by the one before: 300100=3\frac{300}{100} = 3, 900300=3\frac{900}{300} = 3, 2700900=3\frac{2700}{900} = 3.
Conclude the model
The ratio is constant at 33, so the data is exponential with base b=3b = 3 (the shares triple each hour).
State the answer
A constant ratio of 33 confirms an exponential model, and with 100100 shares at the start the equation is S=100(3)tS = 100(3)^t.
core4 marksA fixed building job is shared among workers. The table shows the number of workers nn and the days dd to finish: 44 workers take 1515 days, 66 take 1010 days, 88 take 7.57.5 days, 1212 take 55 days. Determine the type of model, justify your choice, write its equation, and find how long 55 workers would take.
Show worked solution →
Spot the context clue
A fixed total job split among a variable number of workers points to a reciprocal (inverse) model, so test the product n×dn \times d.
Test the product
4×15=604 \times 15 = 60, 6×10=606 \times 10 = 60, 8×7.5=608 \times 7.5 = 60, 12×5=6012 \times 5 = 60.
Conclude the model
The product is constant at 6060, so the relationship is reciprocal with k=60k = 60, and the equation is d=60nd = \dfrac{60}{n}. It cannot be linear: more workers give fewer days, so dd must decrease as nn rises.
Predict for 55 workers
Substitute n=5n = 5: d=605=12d = \dfrac{60}{5} = 12.
State the answer
A constant product of 6060 confirms the reciprocal model d=60nd = \dfrac{60}{n}, so 55 workers would take 1212 days. Check: 5×12=605 \times 12 = 60, matching the constant.
core4 marksA ball is thrown and its height, in metres, is recorded each second: t=0t = 0 gives 00, t=1t = 1 gives 2525, t=2t = 2 gives 4040, t=3t = 3 gives 4545, t=4t = 4 gives 4040. Explain why the data is neither linear nor exponential, then identify the correct model.
Show worked solution →
Test for linear (first differences)
250=2525 - 0 = 25, 4025=1540 - 25 = 15, 4540=545 - 40 = 5, 4045=540 - 45 = -5. The first differences are not constant, so the data is not linear.
Test for exponential (ratios)
250\frac{25}{0} is undefined (division by zero at the start), and 4025=1.6\frac{40}{25} = 1.6 while 4540=1.125\frac{45}{40} = 1.125 are not equal, so the data is not exponential.
Test for quadratic (second differences)
Take differences of the first differences: 1525=1015 - 25 = -10, 515=105 - 15 = -10, 55=10-5 - 5 = -10.
Conclude the model
The second differences are constant at 10-10, so the data is quadratic (a single bend with one turning point, here a peak between t=3t = 3 and t=4t = 4).
State the answer
Differences that change rule out linear, an undefined and non-constant ratio rules out exponential, and a constant second difference of 10-10 confirms a quadratic model, the expected shape for the height of a thrown ball.
core4 marksA streaming channel's subscribers are recorded each month: month 00 is 20002000, month 11 is 24002400, month 22 is 28802880, month 33 is 34563456. The channel claims linear growth. By testing both first differences and ratios, decide whether linear or exponential is the better model, and write it.
Show worked solution →
Test the first differences
24002000=4002400 - 2000 = 400, 28802400=4802880 - 2400 = 480, 34562880=5763456 - 2880 = 576. The differences grow, so the growth is not by a constant amount and the data is not linear; the channel's claim is wrong.
Test the ratios
24002000=1.2\frac{2400}{2000} = 1.2, 28802400=1.2\frac{2880}{2400} = 1.2, 34562880=1.2\frac{3456}{2880} = 1.2.
Conclude the model
The ratio is constant at 1.21.2, so the data is exponential with base b=1.2b = 1.2, i.e. 20%20\% growth per month. Starting from 20002000, the model is S=2000(1.2)tS = 2000(1.2)^t.
State the answer
Growing first differences rule out linear and a constant ratio of 1.21.2 confirms exponential, so the better model is S=2000(1.2)tS = 2000(1.2)^t at 20%20\% growth per month. The constant percentage, not a constant headcount, is the giveaway.
core4 marksA council buys synthetic turf for a square play area. The total turf cost, in dollars, is recorded against the side length ss in metres: 22 m costs $160, 44 m costs $640, 66 m costs $1440, 88 m costs $2560. A planner claims the cost is linear in ss. By testing first and second differences, decide whether linear or quadratic fits, then predict the cost for a 1010 m side.
Show worked solution →
Test the first differences
The side lengths are equally spaced (steps of 22 m), so subtract each cost from the next: 640160=480640 - 160 = 480, 1440640=8001440 - 640 = 800, 25601440=11202560 - 1440 = 1120. They are not constant, so the data is not linear and the planner's claim is wrong.
Test the second differences
Take the differences of those first differences: 800480=320800 - 480 = 320, 1120800=3201120 - 800 = 320.
Conclude the model
The second differences are constant at 320320, so the data is quadratic. This makes sense: the area of a square is s2s^2, so doubling the side roughly quadruples the area and the cost.
Predict at s=10s = 10
The pattern is cost =40s2= 40 s^2 (check: 40×22=16040 \times 2^2 = 160, 40×82=256040 \times 8^2 = 2560). At s=10s = 10: 40×102=400040 \times 10^2 = 4000.
State the answer
Growing first differences rule out linear and a constant second difference of 320320 confirms a quadratic model, so a 1010 m side would cost $4000.
exam5 marksFor a fixed 240240 km drive, the time taken (in hours) is recorded at several average speeds: 4040 km/h takes 66 h, 6060 km/h takes 44 h, 8080 km/h takes 33 h, 120120 km/h takes 22 h. Identify and justify the model, write its equation, predict the time at 100100 km/h, and explain why a linear model would give a poor prediction here.
Show worked solution →
Identify the model
A fixed distance covered at a variable speed is a fixed total shared out, so test the product s×ts \times t: 40×6=24040 \times 6 = 240, 60×4=24060 \times 4 = 240, 80×3=24080 \times 3 = 240, 120×2=240120 \times 2 = 240.
Conclude
The product is constant at 240240 (the distance), so the model is reciprocal, t=240st = \dfrac{240}{s}.
Predict at s=100s = 100
Substitute: t=240100=2.4t = \dfrac{240}{100} = 2.4 hours, which is 22 hours and 0.4×60=240.4 \times 60 = 24 minutes.
Show why linear fails
A straight line through the first and last points, (40,6)(40, 6) and (120,2)(120, 2), has gradient 2612040=0.05\frac{2 - 6}{120 - 40} = -0.05 and equation t=0.05s+8t = -0.05s + 8. At s=100s = 100 that predicts t=0.05×100+8=3t = -0.05 \times 100 + 8 = 3 hours, well above the true 2.42.4 hours, because the real data curves (falls fast then flattens) while a line cannot bend.
State the answer
A constant product of 240240 gives the reciprocal model t=240st = \dfrac{240}{s}; the time at 100100 km/h is 2.42.4 hours, and a linear fit overstates it as 33 hours by ignoring the curve.
exam5 marksAfter a single dose, the mass of a drug in the bloodstream (in milligrams) is measured each hour: hour 00 is 8080, hour 11 is 6060, hour 22 is 4545, hour 33 is 33.7533.75. Show the data is exponential rather than linear, state the percentage eliminated each hour, write the model, and predict the mass after 55 hours.
Show worked solution →
Rule out linear
First differences are 6080=2060 - 80 = -20, 4560=1545 - 60 = -15, 33.7545=11.2533.75 - 45 = -11.25. They are not constant, so the data is not linear.
Confirm exponential
Test ratios: 6080=0.75\frac{60}{80} = 0.75, 4560=0.75\frac{45}{60} = 0.75, 33.7545=0.75\frac{33.75}{45} = 0.75. The ratio is constant at 0.750.75, so the data is exponential with base b=0.75b = 0.75.
Interpret the base
Since 10.75=0.251 - 0.75 = 0.25, the body eliminates 25%25\% of the remaining drug each hour (so 75%75\% stays).
Write the model and predict
The starting mass is 8080 mg, so A=80(0.75)tA = 80(0.75)^t. At t=5t = 5: A=80×0.755=18.98A = 80 \times 0.75^5 = 18.98 mg (to 22 decimal places).
State the answer
A constant ratio of 0.750.75 confirms exponential decay A=80(0.75)tA = 80(0.75)^t, with 25%25\% eliminated hourly, leaving about 18.9818.98 mg after 55 hours. Falling by a constant percentage, not a constant amount, is why a line does not fit.
exam5 marksA student must decide between two models for the data (1,12)(1, 12), (2,18)(2, 18), (3,24)(3, 24), (4,30)(4, 30). Model A is linear, y=6x+6y = 6x + 6. Model B is exponential, y=8(1.5)xy = 8(1.5)^x. Using residuals, decide which model fits better, then use the better model to predict yy when x=8x = 8.
Show worked solution →
Find Model A's predictions and residuals
y=6x+6y = 6x + 6 gives, at x=1,2,3,4x = 1, 2, 3, 4: 6+6=126 + 6 = 12, then 1818, then 2424, then 3030. The residuals (data minus prediction) are 1212=012 - 12 = 0, 1818=018 - 18 = 0, 2424=024 - 24 = 0, 3030=030 - 30 = 0.
Find Model B's predictions and residuals
y=8(1.5)xy = 8(1.5)^x gives 8×1.5=128 \times 1.5 = 12, 8×1.52=188 \times 1.5^2 = 18, 8×1.53=278 \times 1.5^3 = 27, 8×1.54=40.58 \times 1.5^4 = 40.5. The residuals are 1212=012 - 12 = 0, 1818=018 - 18 = 0, 2427=324 - 27 = -3, 3040.5=10.530 - 40.5 = -10.5.
Compare
Model A has residuals of 00 at every point, while Model B drifts to 3-3 and 10.5-10.5. The smaller residuals across the whole dataset belong to Model A, the linear model. (The first differences 6,6,66, 6, 6 confirm linear directly.)
Predict with the better model at x=8x = 8
y=6×8+6=54y = 6 \times 8 + 6 = 54.
State the answer
Model A fits better (residuals all 00 versus Model B's growing gaps), so the prediction at x=8x = 8 is y=54y = 54.
exam6 marksTwo regional towns are studied from the same start year (t=0t = 0, in years). Town A's population is recorded as 1200012\,000, 1250012\,500, 1300013\,000, 1350013\,500; Town B's is recorded as 80008000, 84808480, 89898989, 95289528 (to the nearest person). (a) Identify the model for each town, justify each choice, and write both equations. (b) Although Town A starts larger, Town B grows faster. Find the first whole year in which Town B's population exceeds Town A's.
Show worked solution →
(a) Test Town A
The years are equally spaced, so check first differences: 1250012000=50012\,500 - 12\,000 = 500, 1300012500=50013\,000 - 12\,500 = 500, 1350013000=50013\,500 - 13\,000 = 500. They are constant, so Town A is linear, A=12000+500tA = 12\,000 + 500t (a fixed 500500 people added per year).
Test Town B
The first differences (480480, 509509, 539539) grow, so it is not linear; test ratios instead: 84808000=1.06\frac{8480}{8000} = 1.06, 898984801.06\frac{8989}{8480} \approx 1.06, 952889891.06\frac{9528}{8989} \approx 1.06. The ratio is constant at 1.061.06, so Town B is exponential, B=8000(1.06)tB = 8000(1.06)^t (growth of 6%6\% per year).
(b) Compare the models year by year
Town B catches up because a constant percentage beats a constant amount. Evaluate near the crossover: at t=15t = 15, A=12000+500×15=19500A = 12\,000 + 500 \times 15 = 19\,500 while B=8000×1.061519172B = 8000 \times 1.06^{15} \approx 19\,172, so B is still behind. At t=16t = 16, A=12000+500×16=20000A = 12\,000 + 500 \times 16 = 20\,000 while B=8000×1.061620323B = 8000 \times 1.06^{16} \approx 20\,323, so B has overtaken A.
State the answer
Town A is linear, A=12000+500tA = 12\,000 + 500t; Town B is exponential, B=8000(1.06)tB = 8000(1.06)^t. Town B first exceeds Town A in year 1616 (about 2032320\,323 versus 2000020\,000), the year the accelerating curve passes the straight line.
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