The population of a place increased to 54,000 in 2003 at a rate of 5% per annum find the population in 2001.

Here, A ₂₀₀₃  = Rs. 54,000, R = 5%,  n = 2years

The population would be less in 2001 than 2003 in two years.

Here population is increasing.    

⇒P₂₀₀₁ = 48,980 (approx.)