Question

Directions: Answer the questions below. Make sure to show your work and justify all your answers.

Answer 1

Answer:

  a)  73.52%

  b)  Regular membership is growing faster

Step-by-step explanation:

a)  r(t) = r0·1.047^(12t) . . . . regular members after t years, where r0 is the initial value of regular members at t=0.

Equivalently, this is ...

  r(t) = r0·(1.047^12)^t ≈ r0·1.7352^t

This shows the effective annual growth rate for regular members is 73.52%.

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b) The 74% yearly growth rate of regular members is higher than the 65% yearly growth rate of VIP members. Regular membership is growing faster.