The population of a village increase by 5% annually. If its present population is 4410, then its population 2 years ago was:

Answer: Option B

Using compounding formula
$$\text{a}+\text{b}+\frac{\text{ab}}{100}$$
we have
$$\begin{array}{rl}& 5+5+\frac{25}{100}\\ & =10.25\%\end{array}$$
so if the population 2 yrs ago be x
then
$$\begin{array}{rl}& \text{x}+\frac{10.25x}{100}=4410\\ & \text{or},110.25\text{x}=441000\\ & \therefore \text{x}=4000\end{array}$$