1. The problem states that the population increases exponentially at a rate of 1.6% per year. 2. The formula for exponential growth is $$P = P_0 e^{rt}$$ where: - $P$ is the population at time $t$ - $P_0$ is the initial population - $r$ is the growth rate (as a decimal) - $t$ is the time in years 3. Here, $r = 1.6\% = 0.016$ and $t = 20$ years. 4. The overall increase factor after 20 years is $$e^{0.016 \times 20} = e^{0.32}$$ 5. Calculate $e^{0.32}$: $$e^{0.32} \approx 1.3771$$ 6. The overall percentage increase is then: $$ (1.3771 - 1) \times 100 = 37.71\% $$ 7. Therefore, the population increases by approximately 37.71% after 20 years.