Suppose that the Russian population is declining by 0.48% each year, and continues to decline at this
Question:
Suppose that the Russian population is declining by 0.48% each year, and continues to decline at this rate every year:
a) What is the overall "growth" factor (really a decline factor) for 40 years of population decline? As a percentage of the current population, what will the Russian population be 40 years from now?
b) By what overall percentage will the population decline over the next 40 years?
c) Look again at the answer to part (b) of this question. Suppose that someone makes the argument: "If the Russian population declines by 0.48% each year, then after 210 years there won't be any population left, since (0.48%)(210) is greater than 100%"? What is wrong with this argument?
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw