Answer: Option B
To solve this question, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
where A is the final amount, P is the initial amount, r is the annual interest rate, n is the number of times the interest is compounded per year, and t is the time period in years.
In this case, P = 81250, r = 4%, n = 1 (since interest is compounded once per year), and t = 2.
Plugging in these values, we get:
A = 81250(1 + 0.04/1)^(1*2)= 87880
Therefore, the population of the city 2 years hence will be 87880, which is option B.
Some relevant definitions and formulas related to compound interest are:
Compound interest: Interest that is calculated not only on the initial amount (principal), but also on the accumulated interest from previous periods.Annual interest rate: The rate at which interest is charged or paid per year, usually expressed as a percentage.Compounding period: The frequency at which interest is calculated and added to the principal, such as daily, monthly, or annually.Principal: The initial amount of money on which interest is calculated.Final amount: The total amount of money after interest has been added.Formula for compound interest: A = P(1 + r/n)^(nt), where A is the final amount, P is the initial amount, r is the annual interest rate, n is the number of times the interest is compounded per year, and t is the time period in years.If you think the solution is wrong then please provide your own solution below in the comments section .