In a particular small town, the population in 1995 was 1200. Ever since then the population has grown by 4% every year. If conditions stay the same, what is the approximate expected population in the year 2000?
To find the approximate expected population in the year 2000, we need to calculate the population growth from 1995 to 2000, given an annual growth rate of 4%.
The formula to calculate the future value (population in this case) with annual percentage growth is:
Future value = Present value * (1 + Growth rate)^Number of years
In this case, the present value (population in 1995) is 1200, the growth rate is 4% (or 0.04), and the number of years is 2000 - 1995 = 5.
Let's calculate it step by step:
1. Calculate the population growth factor: (1 + Growth rate) = (1 + 0.04) = 1.04
2. Raise the growth factor to the power of the number of years: 1.04^5 = 1.2166
3. Multiply the present value with the growth factor: 1200 * 1.2166 = 1,459.92
Round the result to the nearest whole number: 1,460
Therefore, the approximate expected population in the year 2000 in that small town would be 1,460.