The answer is that every year, the number of subscribers is estimated to increase by 8% over the number of subscribers the year before. So, the correct option is C.
The image sent shows a question about a formula used by a cable company to estimate the number of subscribers they have after a certain number of years. The question asks what the meaning of the expression
is in the formula.
The answer is that every year, the number of subscribers is estimated to increase by 8% over the number of subscribers the year before.
This means that the cable company is assuming that their subscriber base will grow at a compound annual growth rate (CAGR) of 8%.
Here's a breakdown of the formula:
S: represents the number of subscribers after y years
20,000: represents the initial number of subscribers when the cable company began
(1 + 0.08): represents the growth factor, which is 1 plus the annual growth rate (8%) expressed as a decimal
y: represents the number of years since the cable company began
So, to calculate the number of subscribers after y years, you would simply raise the growth factor (1 + 0.08) to the power of y and multiply it by the initial number of subscribers (20,000).