Question

The very rigorous medical program at a local university has a 30% drop out rate for each year. If the school admits 1,000 freshmen, how many diplomas will need to be ordered 4 years later?

Answer 1

This is like a compound interest problem, but negative. Since it's only 4 years, you can do it by hand without the formula.
start of 1st year = 1000
end of 1st year = 1000 - 30% of 1000
end of 2nd year = answer above - 30% of above
end of 3rd year = answer above above - 30% of above.......

Answer 2

30% drop rate means that 70% of the class remains.
The first year 30% drop meaning that 70% remains of the 1000 students(.70x1000)=700. The second year another 30% drops and 70% remains so it's 700x.70=490 students.
The third year is .70x490 which is 343 students.
The fourth and final year is 343 x.70=240.1
which is approx 240.

Answer 3

Thank you!!