The present population of a town is 24000. If it increases at the rate of 5% per annum, what will be its population after 2 years?
Population of a town, P = 24000
Time, n = 2 years
Increasing rate, R = 5% per annum
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
= 24000 (1 + 5/100)2
= 24000 (1 + 1/20)2
= 24000 (21/20)2
= 24000 × 21/20 × 21/20
= 240 × 21/2 × 21/2
= 60 × 21 × 21
= 26460
∴ Population of a town is 26460 after 2 years.