Answer
The population of the city in 12 years will be around $712,880$.
Work Step by Step
This involves exponential growth since it has a growth rate.
RECALL:
Exponential growth is represented by the formula
$y=C(1+r)^x$
where
C = initial/original amount
r = growth rate
x = number of time intervals
The given situation has:
C = 500,000
r = $3\%$ per year
x = 12 years
Substitute these values into the given formula above to have:
$y=500,000(1+3\%)^{12}
\\y=500,000(1+0.03)^{12}
\\y=500,000(1.03^{12})
\\y \approx712,880$
