Multiple choice

The population of a town increases 4% annually but decreases 1/2 % due to emigration. What will be the net increase percent in three years?

  1. 10

  2. 9.8

  3. 10.8

  4. 10.5
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Net annual increase = 4% - 0.5% = 3.5%. Compounding for 3 years: (1.035)^3 - 1 = 1.1087 - 1 = 10.87%.

AI explanation

The net annual growth rate is the 4% increase minus the 0.5% emigration rate, resulting in a 3.5% net increase per year. Applying the compound interest formula for three years, the net increase factor is (1.035)^3 = 1.108. Therefore, the total net increase over the three years is 10.8 percent.

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