The current population of a city is 11,02,500. If it has been increasing at the rate of 5% per annum, what was its popul...

Question

The current population of a city is 11,02,500. If it has been increasing at the rate of 5% per annum, what was its population 2 years ago?

A. 9,32,500  B. 9,95,006  C. 10,00,000  D. 12,51,506

Accepted Answer

Population 2 years ago = 10,00,000 (Option C) The city's population grows by 5% every year using compound interest logic. We know the current (future) value and need to find the original (past) value. We reverse the compound growth formula by dividing instead of multiplying.