A papaya tree was planted 2 years ago. It increases at the rate of 20% every year. If at present, the height of the tree is 540 cm, what was it when the tree was planted ?
This problem can be viewed as that of compound interest.
Here, the trees growth is componded each year.
Now, let the original height be x.
540 = x*(1.2)^2
x = 375
Hence, the trees height was 375cm before 2 years.
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