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Assume my bank gives me a linear interest of $10 per year.

Then going from $100 to $110 that would be 10%.

Going from $110 to $120 would be ~9%.

Going from $120 to $130 would be ~8%.

In any year you could conclude my savings grow exponentially. 10%! 9%! whoohoo! But if you look over a longer time frame, it clearly isn't.

And as nevdka mentioned, the population growth is less than linear. If my bank gave me $10 of interest last year and $9 this year, and $8 the next, there is definitely no exponential growth.



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