If a national event has a 15% increase in attendance each year, what will be the

If a national event has a 15% increase in attendance each year, what will be the attendance after 2 years if the current attendance is 1,000?

If a national event has a 15% increase in attendance each year, what will be the attendance after 2 years if the current attendance is 1,000?

Step 1: Identify the current attendance, which is 1,000.
Step 2: Determine the annual increase rate, which is 15%. Convert this percentage to a decimal by dividing by 100: 15% = 0.15.
Step 3: Calculate the growth factor for one year by adding 1 to the decimal increase: 1 + 0.15 = 1.15.
Step 4: To find the attendance after 2 years, raise the growth factor to the power of 2: (1.15)^2.
Step 5: Calculate (1.15)^2, which equals 1.3225.
Step 6: Multiply the current attendance by the result from Step 5: 1,000 * 1.3225.
Step 7: Calculate the final attendance: 1,000 * 1.3225 = 1,322.

Exponential Growth – The problem tests understanding of exponential growth, where a quantity increases by a fixed percentage over time.
Compound Interest Formula – The formula used (A = P(1 + r)^n) is similar to the compound interest formula, where P is the principal amount, r is the rate, and n is the number of periods.