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If a population grows by 30 percent and then declines by 20 percent the next year, what is the final change relative to the initial population?

Answer and explanation

Correct answer: 4 percent increase

Successive percentage changes must be applied one after another to the changing amount. They cannot be treated as a simple net change of 30 percent minus 20 percent, because the second percentage is calculated from the amount after the first change.

Take the initial population as 100. A 30 percent increase gives \(100\times1.30=130\). A 20 percent decline then leaves \(130\times0.80=104\). The final value is 104 compared with the original 100, so the net change is a 4 percent increase. Therefore, option A is correct. The difference of 10 percentage points would incorrectly use the same base for both changes.

Related tags

Successive Percentage ChangePopulation Growth DeclineCompound EffectDemography MathsPopulation GrowthThe World Population – DistributionDensity And GrowthThe World Population Distribution Density And Growth

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