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A server is expected to process 2,000 transactions per second during its initial year of deployment. If it is expected to increase transaction growth by 10% annually, how many transactions per second should the server be able to process by the end of its fifth year?

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Answer:

This is like a compound interest problem,

Here, p=2000

          r=10%

          t=5

 Transaction after 5 years= 2000(1+10/100)^5= 3221.02 per second

Explanation:

This is as explained above a compound interest type of question. And the number of transaction per second after 5 years is equal to 3221. Remember, you need to understand the difference between compound interest and simple interest. In first one, we have new p after each year. However, in Simple interest, the p remains the same as the first one.

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