The number 0.99 is the annual multiplier (decay factor). Because it is less than 1, it shows the population is shrinking: each year the town keeps 99% of its population from the previous year.
- Percent change: 0.99 − 1 = −0.01, so the population decreases by 1% per year.
- Example: after 1 year (t = 1) P(1) = 34,000 × 0.99 = 33,660, a drop of 340 people.
- Compounding: after t years the population is 34,000 multiplied by 0.99 repeatedly t times, so the small yearly decreases accumulate over time.
In short: 0.99 means a 1% decrease in population each year (or the population remains at 99% of the previous year's population).