A township expects its population of 5,000 to grow annually at the rate of 5 percent. The

Question:

A township expects its population of 5,000 to grow annually at the rate of 5 percent. 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 percent. How much will the township’s budget be after 10, 15, and 20 years?