Question

The number of houses in Central Village, New York, grows every year at a rate of 3.9%. In 2015, the local

government counted 540 houses. Using this data, how many houses can the local government of Central Village
predict there will be in 2035? (Round your answer to the nearest whole.)

Answer 1

To solve this problem, we can use the formula for compound interest:

A = P(1 + r)^n

where:

A = the final amount

P = the initial amount

r = the annual interest rate (as a decimal)

n = the number of years

In this case, we want to find the final amount (the number of houses in 2035), given the initial amount (540 houses in 2015), the annual interest rate (3.9%), and the number of years (20 years from 2015 to 2035).

So, we can plug in the values and solve for A:

A = 540(1 + 0.039)^20

A = 540(1.039)^20

A = 540(2.011)

A = 1086.54

Rounding to the nearest whole number, we get:

A ≈ 1087

Therefore, the local government of Central Village can predict there will be about 1087 houses in 2035.

Answer 2

We can use the formula for exponential growth:

A = P(1 + r)^t

where:

A = final amount

P = initial amount

r = annual growth rate (as a decimal)

t = time (in years)

Let's plug in the values:

P = 540

r = 0.039

t = 2035 - 2015 = 20

A = 540(1 + 0.039)^20

A ≈ 891

Therefore, the local government of Central Village can predict there will be approximately 891 houses in 2035.