The income of a company increases 20% per annum. If its income is Rs. 2664000 in the year 2012. Then its income in the year 2010 was :

Answer: Option B

Let the income in 2010 be P
⇒ R = 20%
⇒ Income of year 2012
⇒ Rs. 2664000
$$\begin{array}{rl}& \Rightarrow \text{Income of 2012}=P{\left[1+\frac{R}{100}\right]}^2\\ & \Rightarrow 2664000=P{\left[1+\frac{20}{100}\right]}^2\\ & \Rightarrow 2664000=P\times \frac{6}{5}\times \frac{6}{5}\\ & \Rightarrow \text{Income in 2010 = 1850000}\end{array}$$