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Keeping Up With Exponential Growth : Activity 1 of 3

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Have you ever seen get-rich-schemes that ask you to sign up other people? These are pyramid schemes. Beware! They’re illegal, and chances are you’ll lose money. Here’s how it works.

The Circle of Friends gifting club promises members a return of $4,000. To join, you make a gift of $1,000 and must recruit 4 new members.

The Circle of Friends starts with 4 people. If each person signs up 4 new members, how many new members will there be?
Question 1 of 10