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 25 percent in the first two years, 22 percent in year 3, and 18 percent in Year 4. How many members do you expect to have at the end of four years? (Round intermediate calculations to 6 decimal places, in all cases round your final answer to the nearest whole number.) Excel Template (Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have different values. When using this template, copy the problem statement from this screen for easy reference to the values you’ve been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version of the problem.)

Members at the end of four years

Answer 1

Future count of members at the end of year 4 = Current members * (1 + first year) * (1 + Second year) * (1 + Third year) * (1 + Fourth year)

Future count of members at the end of year 4 = 500 * (1 + 25%) * (1 + 25%) * (1 + 22%) * (1 + 18%)

Future count of members at the end of year 4 = 500 * 2.249

Future count of members at the end of year 4 = 1125 Members