A district has 10,24,000 inhabitants. If the population increases at the rate 2.5% per annum, find the number of inhabitants at the end of three years.

For population growth at 2.5% per annum, we use compound interest formula: A = P(1 + r)^n. Initial population P = 10,24,000, rate r = 2.5% = 0.025, time n = 3 years. A = 10,24,000 × (1.025)^3 = 10,24,000 × 1.076890625 = 11,02,736. This accounts for compounding effect where population growth builds upon the previous year's population. Option B matches this calculation.