Question:
The present population of a town is 28000. If it increases at the rate of 5% per annum, what will be its population after 2 years?
Solution:
Here,
$\mathrm{P}=$ Initial population $=28,000$
$\mathrm{R}=$ Rate of growth of population $=5 \%$ per annum
$\mathrm{n}=$ Number of years $=2$
$\therefore$ Population after two years $=\mathrm{P}\left(1+\frac{\mathrm{R}}{100}\right)^{\mathrm{n}}$
$=28,000\left(1+\frac{5}{100}\right)^{2}$
$=28,000(1.05)^{2}$
$=30,870$
Hence, the population after two years will be 30,870 .