Question : The population of the city is 20,000. It increases by 20% during the first year and 30% during the second year. The population after two years will be:
Option 1: 32,000
Option 2: 40,000
Option 3: 31,200
Option 4: 30,000
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Correct Answer: 31,200
Solution : Population after two years $= P(1+\frac{R_1}{100})(1+\frac{R_2}{100})$ where $P$ is the initial population, $R_1$ is the rate of increase in the first year and $R_2$ is the rate of increase in the second year. $= 20000(1+\frac{20}{100})(1+\frac{30}{100})$ $= 20000(\frac{120}{100})(\frac{130}{100})$ $= 31,200$ Hence, the correct answer is 31,200.
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