Problema Solution
Joe starts a gym. In the first year, 300 people join. If the membership grows at an annual rate of 4%, how many members will there be after 5 years?
Answer provided by our tutors
first year: 300 people
second year: 300 + 0.04*300 = 300(1 + 0.04) = 300*1.04
third year: 300*1.04 + 300*1.04*0.04 = 300*1.04*1.04 = 300*1.04^2
forth year: 300*1.04^3
fifth year = 300*1.04^4
fifth year = 351 members approximately
there will be 351 members approximately after 5 years.