Interest - Quant/Math - CAT 2009
Question 4 the day:
August 08, 2002
The question for the day is from the topic of compound interest.
- The population of a town was 3600 three years back. It is 4800 right now. What will be the population three years down the line, if the rate of growth of population has been constant over the years and has been compounding annually?
| (1) |
6000 |
|
(2) |
6400 |
|
(3) |
7200 |
|
(4) |
9600 |
Correct Answer - (2)
Solution:
The population grew from 3600 to 4800 in 3 years. That is a growth of 1200 on 3600 during three year span.
Therefore, the rate of growth for three years has been 
The rate of growth during the next three years will also be the same.
Therefore, the population will grow from 4800 by  = 1600
Hence, the population three years from now will be 4800 + 1600 = 6400.
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