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A farmer increases his output of wheat in his farm every year by 8%. This year produced 2187 quintals

of wheat. What was the yearly produce of wheat two years ago?

Answer:

It is given that

The present production of wheat = 2187 quintals

Increase in production = 8% p.a.

We know that

Production of wheat 2 years ago = A \div(1+r / 100)^{n}

Substituting the values

\begin{aligned} &=2187 \div(1+8 / 100)^{2}\\ &\text { By further calculation }\\ &=2187 \div(27 / 25)^{2} \end{aligned}

So we get

= 2187 × 25/27 × 25/27

= 1875 quintals

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