Question

You decide to take advantage of the current online dating craze and start your own Web site. You know that you have 500 people who will sign up immediately and, through a careful marketing research and analysis, determine that membership can grow by 26 percent in the first two years, 19 percent in year 3, and 18 percent in Year 4. How many members do you expect to have at the end of four years

Answer 1

Answer: 1115

Explanation:

From the question, we've been told that 500 people who will sign up immediately and membership can grow by 26 percent in the first two years. This means that the number of people at the ending of the 2nd year will be:

= 500 × (1 + 26%)^2

= 500 × (1.26)^2

= 500 × 1.5876

= 793.8

The number of people that will be expected at the end of 3rd year will be:

= 793.8 × (1 + growth rate)

= 793.8 × (1 + 19%)

= 793.8 × (1 + 0.19)

= 793.8 × 1.19

= 944.622

The number of people that will be expected at the end of 4th year will be:

= 944.622 × (1 + 18%)

= 944.622 × (1 + 0.18)

= 944.622 × 1.18

= 1114.654

= 1115 approximately

At the end of four years, 1115 members are expected.