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Keeping Up With Exponential Growth : Activity 1 of 3

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Different pyramid schemes have different rules. In general, a few people at the top get paid first. Usually, the money runs out before the many people below see a dime. With pyramid schemes, it takes a lot of losers to pay a few winners at the top. With Circle of Friends, your joining “gift” of $1,000 goes to pay the people in the levels above.

Circle of Friends promises you'll make $4,000 for joining. All you have to do is pay $1,000 and get 4 more people to join. If you were one of the 1,024 people who joined Circle of Friends at level 5, how many people must join so everyone in your level can get paid?
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Question 5 of 10