Exponential growth??

Membership at a local club grows at a rate of 7.8% every 6 months and currently has 3 members; 3 years.

I know that I have to use a = (1+r)^t
But the six months kinda throws me off...?

Question

Exponential growth??


Membership at a local club grows at a rate of 7.8% every 6 months and currently has 3 members; 3 years. 

I know that I have to use a = (1+r)^t
But the six months kinda throws me off...?

anonymous · Answer

Ahh good thinking! Now, you have to know that the 't' stands for number of >periods< (keyword there) So if you have a fixed annual compound interest of 2% for 6 years, that's 6 periods because the interest is annual.

In your case one period is 6 months. Now think, how many "6 months" are there in 3 years?

anonymous · Answer

6 ?

anonymous · Answer

Yup (: so t=6

anonymous · Answer

oh thankss! can you help with another?

anonymous · Answer

Sure just post another thread and mention me (@myname)