Very basic geometric growth calculation...

Hi all,

I am training in IT but I don't yet have much grasp of anything other than day-to-day mathematics.

I am wanting to get to grips with what is no-doubt a rudimentary mathematical calculation that calculates the 'geometric growth' of server usage over a given number of months.

*Geometric growth*, also known as *compound growth*, is characterized by a increase in steady percentage, factor, or ratio per time period, as in an increase in database size of 2 percent per month. To project geometric growth into the future, use the following formula:

Future Usage = current usage x (1 + growth rate)number of periods

When using this equation, be sure to express the growth rate as a decimal value. For example, if the database is currently 600GB and grows at the rate of 2 percent a month, you can calculate what size the database will be in 3 years (36 months) by filling the values into the preceding formula.

Database Size in 3 Years = 600 x (1+.02)36

Database Size in 3 Years = 600 x (1.02)36

Database Size in 3 Years = 600 x (2.04)

Database Size in 3 Years = 1224GB

I don't quite get how the number of months (36) is used in the above calculation. Could someone walk me through this?

Cheers,

mark