Difficulty: Easy
Correct Answer: 10100
Explanation:
Introduction / Context:We are asked for the increase (difference between the 2-year future population and the original), not the final population itself.
Given Data / Assumptions:
Concept / Approach:Increase = P0 * [(1 + r)^n − 1] = 250000 * (1.02^2 − 1).
Step-by-Step Solution:
1.02^2 = 1.0404.Increase factor = 1.0404 − 1 = 0.0404.Increase amount = 250000 * 0.0404 = 10100.Verification / Alternative check:Year 1 increase: 2% of 250000 = 5000 ⇒ total 255000. Year 2 increase: 2% of 255000 = 5100. Total increase over two years = 5000 + 5100 = 10100.
Why Other Options Are Wrong:
Common Pitfalls:Multiplying 2% by 2 without compounding; this underestimates the growth by 100.
Final Answer:10100
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