The population of a town is 125000. It is increasing at the rate of 2% per annum. What will be its population after 3 years?
Population of a town, P = 125000
Time, n = 3 years
Increasing rate, R = 2% per annum
Now,
Amount (A) = P (1 + R/100)n [Where, A = Amount with compound interest
P = Present value
R = Annual interest rate
n = Time in years]
∴ Population = P (1 + R/100)n
= 125000 (1 + 2/100)3
= 125000 (1 + 1/50)3
= 125000 (51/50)3
= 125000 × 51/50 × 51/50 × 51/50
= 1 × 51 × 51 × 51
= 132651
∴ Population of a town after 3 years is 132651.