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What is the estimated membership of the social networking site after 3 months if it starts with 5,000 members and increases by 80% each month?

a) 12,800
b) 15,000
c) 18,000
d) 20,000

1 Answer

6 votes

Final answer:

The estimated membership of the social networking site after 3 months, starting with 5,000 members and increasing by 80% each month, would be 29,160 members. This calculation results from using the formula for compound growth. Hence, the correct membership estimate is not listed among the provided options.

Step-by-step explanation:

To estimate the membership of the social networking site after 3 months with an initial membership of 5,000 and an increase of 80% each month, we need to apply compound growth. The formula to calculate the new number of members is:

Final Membership = Initial Membership × (1 + Growth Rate)^{Number of Periods}

In this case, the growth rate is 80% or 0.8 when expressed as a decimal, and the number of periods is 3 months.

Final Membership = 5,000 × (1 + 0.8)^3

Final Membership = 5,000 × (1.8)^3

Final Membership = 5,000 × 5.832

Final Membership = 29,160

So the estimated membership after 3 months is 29,160, which means that none of the provided options (a) 12,800, (b) 15,000, (c) 18,000, (d) 20,000 are correct.

User Andrew Laughlin
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