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Question
In a forest there are 40,000 trees. Find the expected number of trees after 3 years if the objective is to increase the number at the rate 5% per year.
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Solution
Here, P = Number of trees initially = 40,000
A = Number of trees after 3 years
R = Rate of increase of number of trees per year = 5 %
N = 3 years
A = P `(1 + "R"/100)^"N"`
= 40000 `(1 + 5/100)^3`
= 40000 `(1 + 1/20)^3`
= 40000 `(21/20)^3`
= 46305
Hence, the expected number of trees after 3 years is 46,305.
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