Question

Suppose the population of a town is 8,600 and is growing 3% each year. Predict the population after 3 years.

Answer 1

After 1 year: 1.03 * 8600 = 8858
After 2 years: 1.03 * 8858 = 9123.74
After 3 years: 1.03 * 9123.74 = 9397.45
Approximately 9397 people will live in the town after 3 years.

Answer 2

Approximately 9397

Explanation:

This is a compound growth question. This can be solved with the formula:

`F=I(1+r)^(t)`

Where,

• F is the future value
• I is the initial value
• r is the growth rate (in decimal)
• t is the time (in years)

Problem wants to know F. It is given that initial amount (I) is 8600, growth rate (r) is 3% = 0.03, & time (t) is 3 years.

Plugging these values in the formula gives us F:

`F=I(1+r)^t\\F=8600(1+0.03)^3\\F=8600(1.03)^3\\F=9397.45`

(after rounding) The population of the town after 3 years will approximately be 9397 people