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) $18,000$
B) $20,000$
C) $21,500$
D) $19,000$
Correct Answer: B
<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>
$P = \frac{20,700}{1.035} = 20,000$.


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