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

Question

Quizplus · Accepted Answer

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.

If the Town's Population Was 62,000 at the End of Year