The requirement for computer server capacity at Acme Industries is expected to increase at a rate of 15% per year for the next 5 years. If the server capacity is expected to be 1,400 gigabytes in 5 years, how many gigabytes of capacity are there today? Round to the nearest whole gigabyte.

Question

The requirement for computer server capacity at Acme Industries is expected to increase at a rate of 15% per year for the next 5 years.  If the server capacity is expected to be 1,400 gigabytes in 5 years, how many gigabytes of capacity are there today?  Round to the nearest whole gigabyte.

Henry · Answer

C = Co + Co*r*t = 1400 Gigabytes. Co + Co*0.15*5 = 1400 Co + 0.75Co = 1400 1.75Co = 1400 Co = 800 Gigabytes = Today's capacity.