Question : The population of a town increases by 8% every year. If the present population of the town is 14,580, then what was the population of the town 2 years ago?
Option 1: 13,600
Option 2: 12,200
Option 3: 13,765
Option 4: 12,500
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Correct Answer: 12,500
Solution : Present population = 14580 Increase in population every year = 8% Let the population of town 2 years ago be $\text{p}$. Population after 1 year $=\text{p}$ + 8% of $\text{p}=\text{p} + \frac{8}{100}\times{\text{p}}=\text{p}+\frac{2\text{p}}{25} = \frac{27\text{p}}{25}$ After the second-year increase, Population after 2 years $=\frac{27\text{p}}{25}+\frac{8}{100}\times \frac{27\text{p}}{25} = \frac{27\text{p}}{25}+\frac{54\text{p}}{625}=\frac{675\text{p}+54\text{p}}{625} = \frac{729\text{p}}{625}$ According to the question, $\frac{729\text{p}}{625}$ = 14580 ⇒ $\text{p}=\frac{14580 \times 625}{729} = 20 × 625 = 12500$ $\therefore$ The population of the town 2 years ago was 12,500. Hence, the correct answer is 12,500.
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