A city of 12 lakh grows at 4 per cent per annum. What is its population after 2 years?

1. Growth compounds, so A = P (1 + R/100) raised to n with P = 12,00,000 and R = 4. 2. After year 1: 1200000 x 1.04 = 12,48,000. 3. After year 2: 1248000 x 1.04 = 12,97,920. 4. Adding a flat 4 per cent of the original twice would give 12,96,000, which is the trap. 5. The gap of 1,920 people is the growth on the first year's growth. _Source: NCERT Class 8 Maths Ch7 'Comparing Quantities', TRY THESE after Example 10_