If a population of rabbits grows by 50% over 10 years, what is the average finite rate of increase per year?
A) 1.5
B) 50
C) 1.04
D) 57.67
E) 38.44

Question

Quizplus · Accepted Answer

The average finite rate of increase per year can be calculated using the formula for compound interest growth: $A = P(1 + r)^n$, where $A$ is the final amount, $P$ is the initial amount, $r$ is the rate of increase, and $n$ is the number of periods. Rearranging to solve for $r$, and knowing that the population grows by 50% over 10 years, we set $A/P = 1.5$ and $n = 10$. Solving for $r$ gives us an approximate annual growth rate of 1.04, indicating that the population grows by about 4% per year.

If a Population of Rabbits Grows by 50% Over 10