Question

Suppose the population of a small town is 567 in 2011. The population decreases at a rate of 1.5% every year. What will be the population of the town in 2020?

Answer 1

Answer: 495 people

Explanation:

As this involves the population in a future year, you can use the future value model for this:

= Population * ( 1 + rate of increase) ^ number of years

Number of years = 2020 - 2011

= 9 years

Rate of increase will be negative to show that it is a decrease.

= 567 * ( 1 - 1.5%) ⁹

= 494.9

= 495 people