Due to a turnover, a company hires 400 employees each year, on average. Assume that an average stay of an employee in the company is 5 years. On average, how many employees does the company have?

On average, the company has 2000 employees.

Explanation:

Since, due to a turnover, a company hires 400 employees each year, on average; assuming that an average stay of an employee in the company is 5 years, to determine, on average, how many employees does the company have, the following calculation must be performed:

Year 0 = 0

Year 1 = 400 (+400)

Year 2 = 800 (+400)

Year 3 = 1200 (+400)

Year 4 = 1600 (+400)

Year 5 = 2000 (+400)

Year 6 = 2000 (+400 -400)

Year 7 = 2000 (+400 - 400)

Therefore, on average, the company has 2000 employees.

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