Asked by Alexandra Barrett on May 04, 2024
Verified
If the town's population was 62,000 at the end of year 5, and the population grew at the same annual rate as the number of eating establishments between the end of year 1 and the end of year 5, what was the town's population at the end of year 1 if the annual growth rate is 5.626%?
A) 49,809
B) 51,435
C) 53,230
D) 54,330
E) 56,730
Annual Growth Rate
The annual growth rate measures the percentage increase in the value of a particular variable (such as revenue, profit, or investment) over a one-year period, indicating the pace of growth.
Eating Establishments
Refers to businesses that serve food and beverages for consumption by customers on-premises or through take-away and delivery services.
Population
The total number of individuals or entities within a specified area or group.
- Investigate the augmentation of financial investments by employing compound interest through varied intervals.
Verified Answer
TR
thaminah RaheemMay 09, 2024
Final Answer :
A
Explanation :
The population at the end of year 1 can be calculated using the formula for compound interest, P = A / (1 + r)^n, where P is the principal amount (population at the end of year 1), A is the amount after n years (population at the end of year 5), r is the annual growth rate, and n is the number of years. Here, A = 62,000, r = 5.626% or 0.05626, and n = 4 (from the end of year 1 to the end of year 5). Plugging these values into the formula gives P = 62,000 / (1 + 0.05626)^4, which calculates to approximately 49,809.
Learning Objectives
- Investigate the augmentation of financial investments by employing compound interest through varied intervals.