A Population Growing at an Annual Rate R Will Triple

question 137

Multiple Choice

A population growing at an annual rate r will triple in a time t given by the formula . If the growth rate remains constant and equals 5% per year, how long will it take the population of the town to triple?

• A)1.6 years
• B)22 years
• C)0.7 years
• D)9.5 years
• E)4.8 years

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Definitions:

EAR

Stands for Effective Annual Rate, which is the real return on an investment, accounting for the effect of compounding interest over a period.

Compounded Semi-Annually

Concerns the process where the interest earned on an investment is added to the principal twice a year, allowing the interest to earn interest.

Rate of Return

Indicates the percentage of profit or loss on an investment over a specific time period, expressing the gain or loss in comparison to the investment's cost.

Initial Investment

The amount of money used to start a project, purchase an asset, or invest in a financial instrument.