Question

The population of a town is 125000. It is increasing at the rate of 2% per annum. What will be its population after 3 years?

Answer 1

Population of a town, P = 125000 

Time, n = 3 years 

Increasing rate, R = 2% per annum 

Now, 

Amount (A) = P (1 + R/100)ⁿ [Where, A = Amount with compound interest 

P = Present value 

R = Annual interest rate 

n = Time in years] 

∴ Population = P (1 + R/100)n 

= 125000 (1 + 2/100)³ 

= 125000 (1 + 1/50)³ 

= 125000 (51/50)³ 

= 125000 × 51/50 × 51/50 × 51/50 = 1 × 51 × 51 × 51 

= 132651 

∴ Population of a town after 3 years is 132651.