24Percent growth rate, 1.03^t

A town's population $\displaystyle t$ years after 2020 is modeled by $\displaystyle P(t) = 8{,}400(1.03)^t$. By what percent does the model say the population increases each year? A) 0.03% B) 3% C) 30% D) 103%

The population grows by 3% each year, answer B. The growth factor 1.03 matches the form 1 + r, so r = 0.03, which is 3%.