Question : The population of a town is 1,25,000. If the annual birth rate is 12.7% and the annual death rate is 2.7%, how much will the population increase after 3 years?
Option 1: 43,285
Option 2: 41,375
Option 3: 42,565
Option 4: 40,275
Correct Answer: 41,375
Solution : The present population, $P$ = 1,25,000 Increase rate, $r$ = 12.7% – 2.7% = 10% Time, $n$ = 3 years Total population = $P(1+\frac{r}{100})^{n}$ = $125000(1+\frac{10}{100})^3$ = $125000(\frac{11}{10})^3$ = $125000×\frac{11}{10}×\frac{11}{10}×\frac{11}{10}$ = $166375$ $\therefore$ Population increase = 166375 – 125000 = 41,375 Hence, the correct answer is 41,375.
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