Question : The present population of the town is 26010. It increases annually at a rate of 2%. What was the population of the town two years ago?
Option 1: 25000
Option 2: 25100
Option 3: 25200
Option 4: 25500
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Correct Answer: 25000
Solution : The present population is $26010$. The population after $n$ years = $P(1+\frac{r}{100})^n$, where $P$ is the population before two years and the population increases at a rate of $r$% per annum. So, $P(1+\frac{2}{100})^2 = 26010$ ⇒ $P = 25000$ Hence, the correct answer is 25000.
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