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If a country's population declines by 10 percent annually for two years, why is the total decline slightly less than 20 percent?

Answer and explanation

Correct answer: The second 10 percent decline applies to a smaller population base

A repeated percentage change is applied to the amount remaining after the previous change, not to the original amount each time. This is why equal annual percentage decreases cannot simply be added. The second decrease has a smaller base than the first one.

For example, start with 100. A 10 percent decrease leaves 90. Ten percent of 90 is 9, so the second year leaves 81. The total fall is 19 from the original 100, or 19 percent, not 20 percent. Therefore, option A is correct. The process can also be written as \(100 \times 0.9 \times 0.9=81\).

Related tags

Compound DeclineSuccessive Percentage DecreasePopulation CalculationDemography MathsPopulation GrowthThe World Population – DistributionDensity And GrowthThe World Population Distribution Density And Growth

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