1. The population of a town increases by 15% in the first year and decreases by 10% in the second year. If the current population is 20,700, what was the population two years ago?
A) 18,000B) 20,000C) 21,500D) 19,000
✓ Correct Answer: Option B
Explanation: <strong>Solution:</strong><br>
Let the population two years ago be P.<br>
After 1st year: $P \times (1 + \frac{15}{100}) = P \times 1.15$<br>
After 2nd year: $(P \times 1.15) \times (1 - \frac{10}{100}) = 20,700$<br>
$P \times 1.15 \times 0.9 = 20,700$<br>
$P \times 1.035 = 20,700$<br>
$P = \frac{20,700}{1.035} = 20,000$.