A village's population grew from 62,500 to 72,900 in two years, at the same rate each year. What was the annual rate of growth?

Explanation

1. 01

   Growth factor over 2 years = $\frac{72900}{62500} = 1.1664$.

2. 02

   $1.1664 = 1.08^2$, so the yearly factor is 1.08.

3. 03

   Annual rate = 8%.