sol 1. annual exponential growth is same as the compound annual growth rate.
solve it by taking an example of simple and compound interest....
if u have principal amt of 100 rs and if you add simple interest of 2% annually upto 10 years then u get total of 120 rs..total interest earned is 20% of principal..
now if u take compound annual interest rate of 2 % on the same principle of 100 rs for ten years then u vil get a value greater then 120..the total interest will be greater than 20 %..
so to earn a total interest of 20 %, the compound annual interest rate shud be less den 2%.
you can apply dis logic to dis question of population growth
Akshay Jain
Masters in Economics
Delhi School of Economics
2013-15