Practice mode Compound Interest

The population of a village decreases by 5% every year. If it is 36,100 now, what was it 2 years ago?

Correct answer C. 40,000

Explanation

Population 2 years ago = 36100 / (0.95)² = 36100 / 0.9025 = 40,000. Check: 40000 × 0.95 = 38000 and 38000 × 0.95 = 36100.

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