A town has 8000 people. The population increases by 10% in the first year and by 20% in the second year. What will be the population after 2 years?

Introduction / Context:
Successive percentage changes compound multiplicatively. Apply each year’s growth factor to the running total rather than summing the percentages.

Given Data / Assumptions:

• Initial population = 8000.
• Year 1 growth = +10% ⇒ factor 1.10.
• Year 2 growth = +20% ⇒ factor 1.20 applied to the result after year 1.

Concept / Approach:
Final population = 8000 * 1.10 * 1.20. Multiply the factors first or compute year by year; both yield the same result. This is standard compound percentage growth.

Step-by-Step Solution:

Verification / Alternative check:
Combine factors: 1.10 * 1.20 = 1.32 ⇒ 8000 * 1.32 = 10560. Same answer.

Why Other Options Are Wrong:
10400 assumes adding percentages once (10% of 8000 plus 20% of 8000); 10620 is a mis-multiplication; “None of these” is not applicable.

Common Pitfalls:
Adding 10% and 20% to get 30% and then taking 30% of 8000 (2400) to claim 10400; that ignores compounding.

Final Answer:
10560