Question

The rate of increase in population is 25%. What will be the population after 2 years if the initial population is 20000?

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Answer 1

The rate of increase in population is the increase in population compared to the previous year.
Use the concept of compound interest:

A = P × ${[1+\frac{R}{100}]}^2$

= 20000 × ${[1+\frac{25}{100}]}^2$

= 31250
After 2 years the population will be 31250.