SOLUTION: Suppose a certain population increases by 20% every ten years. By what percent does the population increase each year (assuming a constant growth rate)? (Hint: the answer is not

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Question 973881: Suppose a certain population increases by 20% every ten years. By what percent does the population increase each year (assuming a constant growth rate)? (Hint: the answer is not 2%.)
Show your work. Round to the nearest hundredth of a percent.
I believe they are asking for me to use the equation A = Pe^(rt)
Thank you!!
Answer by Boreal(15235) About Me  (Show Source):
You can put this solution on YOUR website!
They are asking for it
A=P exp (rt)
A=1.2P after 10 years.
Therefore, 1.2P=Pexp (rt)
1.2=exp (r*10)
Take ln of both sides
ln (1.2)=10r
ln(1.2)=0.1823
divide by 10, both sides.
r=0.01823= 1.82%
Compounding is why a percentage less than 2% per year increases something 20% in 10 years.