The population of a village increases by 5% every year. If the present population of the village is 4410, what was its population two years ago?

Let the population of the village two years ago be P.
The population grows at a compounding rate of R=5% per year for n=2 years. The formula for the final population is:

Present Population=P×(1+
100
R
​
)
n

Substitute the given values into the equation:

4410=P×(1+
100
5
​
)
2

4410=P×(1+
20
1
​
)
2

4410=P×(
20
21
​
)
2

4410=P×
400
441
​

Solving for P:

P=
441
4410×400
​

P=10×400=4000
Thus, the population of the village two years ago was 4000.