Question

The population of village is 8125. Ifield the annual birth rate is 7 percent and death rate is 3 percent calculate the population after 2 years.

Answer 1

In reality, these rates would be considered continuously.
so pop. after 2 years = 8125 e^(2(.07)) * e^(2(-.03))
= appr 8802
or, simply the effective growth rate is 4%
population = 8125 e^.08 = appr 8802

I have a feeling they simply want this:
pop = 8125 (1.07)^2 (1.03)^-2 = appr 8768
or perhaps
pop = 8125 (1.07)^2 (.97)^2 = appr 8753

another interpretation would be to simply say
the the effective rate of growth is 4%
then pop = 8125 (1.04)^2 = appr 8788

check my calculations. I don't know which approach you have learned.

Answer 2

wouldn't that be (1.07)^2 (0.97)^2 ?

Answer 3

Steve, I have that as one of the possible methods.
(about 1/3 of the way down in my post)