Multiple choice

Population of a city increases by 2.5\% annually but is decreased by 0.5\% every year due to migration. What will be the percentage increase in 3 years?

  1. $4.04\%$
  2. $6.075\%$
  3. $6.1208\%$
  4. $7.1208\%$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Net annual increase = 2.5% - 0.5% = 2%. Using compound growth formula: (1.02)³ - 1 = 1.061208 - 1 = 0.061208 = 6.1208%. The calculation is precise: 1.02 × 1.02 = 1.0404, then 1.0404 × 1.02 = 1.061208.