Question

Kaizen is a Japanese word that means continuous development. It says that each day we should focus on getting1% better on whatever we're trying to improve.How much better do you think we can get in a year if we start following Kaizen today?Note: You can take the value of (1.01)^365 as 37.78%Show Calculator

Answer 1

This is a compound interest-like problem.

The formula we can use is:

$Improvement=P(1+r)^{365}$

P is the initial value of the skill we are trying to improve

r is the rate we are improving per day, in decimal

Then:

Let's say P = 1, that's the initial value of the skill

To convert 1% daily in to decimal:

$r=\frac{1}{100}=0.01$

Thus:

$Improvement=1(1+0.01)^{365}=1.01^{365}$

Using the value given by the problem:

$Improvement=37.78$

This means that after a year of improving 1% daily, we are getting 37.78 times better at it!

To convert this to percentage, we multiply by 100:

$37.78\cdot100=3778\%$

The answer is 3778%