Question

The population of a town 4000 and is decreasing by the rate of 5% per year. Estimate the population of the town after 3 years.

Answer 1

.05*3= .15

4000*.15= 600 So 600 people left the town

Now subtract

4000-600= 3400

Answer 2

4000 * (1-0.05)^3

4000 * (0.95)^3 = 3429.5

 so approximately 3430 people are in the town