Question

The population of a town is 500,000 in 1990. The population increases at a rate of 5% every five years. What will be the approximate population of the town in 2005?
A. 578,813
B. 587,712
C. 499,354
D. 512,945

Answer 1

A = P(1+r)^(t/5) A = 500000(1+0.05)^(15/5) A = 500000(1.05)^(15/5) A = 500000(1.05)^3 A = 500000*1.157625 A = 578812.5 Telling us that the population will be about 578,812 people in the year 2005