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Ratio/Percent Problem - Population Increase

Expert replies
by Ryan Ziemba » Tue Aug 03, 2010 3:23 am
I came across the PS problem below in the Kaplan quant workbook and do not feel that the recommended solution is necessarily the most comprehensive approach (for me at least). I'd love to see examples of how others might work this out.

Kaplan Math Workbook
6th Addition
Problem 22, Page 63

The population of a certain town increases by 50% every 50 years. If the population in 1950 was 810, in what year was the population 160?

a) 1650
b) 1700
c) 1750
d) 1800
e) 1850

Answer: c) 1750

Kaplan's solution:

"Since the population increases by 50% every 50 years, the population in 1950 was 150%% or 3/2 of the 1900 population. This means the 1900 population was 2/3 of the 1950 population. Similarly, the 1850 population was 2/3 of the 1900 population, and so on. We can just keep multiplying by 2/3 until we get to a population of 160."

1950: 810 x 2/3 = 540 in 1900
1900: 540 x 2/3 = 360 in 1850
1850: 360 x 2/3 = 240 in 1800
1800: 240 x 2/3 = 160 in 1750
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Source: — Problem Solving |

by pradeepkaushal9518 » Tue Aug 03, 2010 4:08 am
so whats the problem to u?
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by selango » Tue Aug 03, 2010 4:21 am
Pradeep..Ryan s asking is there any other approach to this problem?
--Anand--
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by clock60 » Tue Aug 03, 2010 4:47 am
160*(3/2)^n=810
(3/2)^2=(3/2)^4
n=4
time=4*50=200
1950-200=1750
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by globalcitizen » Tue Aug 03, 2010 4:47 am
I looked at the 50% increase every 50 years the same as I would look at a compound interest problem. I used to the compound interest formula to solve this.

Compound interest formula:
A=P(1+(i/c))^(ct) such that A=final value, P=principal, i=interest rate, c=# of times compounded per yr, t=number of years. If this is confusing just google "compound interest formula".

We are given the following:
810=final value so A
160=principal so P
50%=interest rate so i
1=# of times the principal increases every 50 years
The number of years, t, is unknown and what we are solving for.

So,
810=160(1+(.5/1))^(1*t)
810=160(1.5)^t or 810=160(3/2)^t
(3/2)^t=81/16
(3/2)^t=(3/2)^4
t=4

In other words, 160 increases by 50% four times. Since the principal is increased by 50% every 50 years --> 4*50=200. 1950-200=1750

Hope that makes sense! Let me know if you have questions
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by selango » Tue Aug 03, 2010 6:19 am
160[1+50/100]^n=810

160[1+1/2+^n]=810

[3/2]^n=81/16

n=4(ie)200 yrs

1750
--Anand--
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by Ryan Ziemba » Tue Aug 03, 2010 8:03 am
Yes! The compound interest approach makes perfect sense. Thank you.
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by indiantiger » Tue Aug 03, 2010 6:21 pm
CI approach is great. I did the brute force way.
"Single Malt is better than Blended"
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