Explanation:
the other answer is correct.
I just want to point out some mechanism used here :
the increase by 1.2%
an increase by x% means adding x% to the original 100%.
so, we end up with (100 + x)%.
"%" just stands for 1/100.
so, if y = 100%, an increase by x% is
y×(100 + x)/100 = y×(1 + x/100)
in our case here that is
345,000 × (1 + 0.012) = 345,000 × 1.012
and since the increase rate of 1.2% applies per year, we multiply the end population of every year by 1.012 for the following year.
so, each year a new factor of 1.012 is being integrated into the calculation.
it goes then
345,000×1.012×1.012×1.012×...×1.012 x times after x years.
and we get
y = 345,000 × (1.012)^x