Question
The population of a town increases by 2.5% annually but
it decreases by 0.5% every year due to migration. What will the percentage increase in two years be?Solution
The net annual growth rate is 2.5% − 0.5% = 2% Let the initial population be PPP. After 2 years = P × (1.02)2 = P × 1.0404 Percentage increase = (1.0404 − 1) × 100 = 4.04%
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