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The number of trees in a town is 17640. If the numbers of trees increases annually at the rate of 5%, then how many trees were there 2 years ago?
Let the number of trees 2 years ago = $$P$$
Rate of increase of trees = 5%
=> Trees after 2 years = $$P(1+\frac{R}{100})^T$$
=> $$P(1+\frac{5}{100})^2=17640$$
=> $$P(\frac{21}{20})^2=17640$$
=> $$P=17640\times\frac{400}{441}$$
=> $$P=40\times400=16000$$
=> Ans - (C)
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