Q26
ArithmeticSimple & Compound Interest
The present population of a city is 180000. If it increases at the rate of 10% per annum, its population after 2 years will be:
- a.207800
- b.227800
- c.217800
- d.237800
Answer: (C) 217800
Growth compounds yearly, so the population after 2 years is 180000 × 1·1 × 1·1 = 180000 × 1·21 = 217800. Adding a flat 20% would give 216000, which is not an option, and the other figures do not match $1.1^2$.