Town Population Growth Calculation

In a small town, the population increases annually by a fixed percentage. In 2020, the town's population was 8,000. If the population increases by 5% each year, what will the population be in 2025?

To calculate the population after several years with a fixed percentage increase, you can use the formula:

$$ P(t) = P_0 (1 + r)^t $$

where:

• $$ P(t) $$ = future population
• $$ P_0 $$ = initial population
• $$ r $$ = rate of increase (as a decimal)
• $$ t $$ = number of years