The population of a town increases by 16% each year. If the population at the beginning of this year is 18,750, what will the population be at the end of next year?

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  1. 21,750
  2. 24,750
  3. 19,230 
  4. 25,230

Answer (Detailed Solution Below)

Option 4 : 25,230
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Detailed Solution

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Given:

Current population at the beginning of this year (P) = 18,750

Annual increase rate (R) = 16%

Time period (n) = 2 years (end of next year means two years from the beginning of this year)

Formula Used:

Population after n years with a constant annual increase rate = \(P(1 + \frac{R}{100})^n\)

Calculation:

\(P_2 = 18750(1 + \frac{16}{100})^2 = 18750(1.16)^2\)

P2 = 18750 × 1.3456

P2 = 25230

The population at the end of next year will be 25,230.

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