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If a population grows by 8 percent annually for two consecutive years, what is the approximate total two-year growth?

Answer and explanation

Correct answer: 16.64 percent

When the same annual growth rate applies repeatedly, the second year acts on the population already increased during the first year. This is compound growth, not simple addition. Therefore, the second 8 percent is calculated on 108 percent of the original population.

Starting with population P, after two years it becomes \(P\times1.08\times1.08=P\times1.1664\). The final population is 116.64 percent of the original, so the total increase is 16.64 percent. Hence option B is correct. Adding 8 percent and 8 percent gives 16 percent only as a rough simple-growth estimate and misses the second-year increase on the first year’s gain.

Related tags

Compound GrowthTwo Year GrowthAnnual Growth RatePopulation MathsPopulation GrowthThe World Population – DistributionDensity And GrowthThe World Population Distribution Density And Growth

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