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A township expects its population of 5

# A township expects its population of 5 - \$300 x 1.967 =...

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A township expects its population of 5,000 to grow annually at a rate of 5%. The township currently spends \$300 per inhabitant, but, as the result of inflation and wage increments, expects the per capita expenditure to grow annually by 7%. How much will the township’s budget be after 10, 15, and 20 years? 5,000 (1 + 1.05) 10 = 5,000 x 1.05 10 = 5,000 x 1.629 = 8,145 inhabitants after 10 years
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Unformatted text preview: \$300 x 1.967 = \$590 per person; 8,145 x \$590 = \$4,805,550 budget 5,000 (1 + 1.05) 15 = 5,000 x 1.05 15 = 5,000 x 2.079 = 10,395 inhabitants after 15 years \$300 x 2.759 = \$828 per person; 10,395 x \$828 = 8,607,060 budget 5,000(1 + 5%) 20 = 5,000 x 1.05 20 = 5,000 x 2.653 = 13,265 inhabitants after 20 years \$300 x 3.870 = \$1,161 per person; 13,265 x \$1,161 = 15,400,665 budget...
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