Exponential Decay Modeling | Population decreasing | Compound Interest Formula

In this example, we create an exponential decay model to represent a population that is decreasing. To do so, we use the compound interest formula (A=P(1+r/n)^(nt)) because we do not see any of the key words (continuous, continuously, exponential law, law of uninhibited growth, law of decay) that would point us towards using the continuously compounded interest formula. We use our model to answer a follow up question where we estimate the population in the future.