A farmer increases his output of wheat in his farm every year by 8%. This year he produced 2187 quintals of wheat. What was the yearly produce of wheat two years ago?

Let yearly produce 2 years ago be P. Then present production will be the final production.

By formula,

V = $V_0\Big(1 + \dfrac{r}{100}\Big)^n$

Putting values in formula we get,

$\Rightarrow 2187 = P \times \Big(1 + \dfrac{8}{100}\Big)^2 \\[1em] \Rightarrow 2187 = P \times \Big(\dfrac{108}{100}\Big)^2 \\[1em] \Rightarrow 2187 = P \times \Big(\dfrac{27}{25}\Big)^2 \\[1em] \Rightarrow 2187 = P \times \dfrac{27}{25} \times \dfrac{27}{25} \\[1em] \Rightarrow 2187 = P \times \dfrac{729}{625} \\[1em] \Rightarrow P = \dfrac{2187 \times 625}{729} \\[1em] \Rightarrow P = 3 \times 625 \\[1em] \Rightarrow P = 1875.$

Hence, the yearly produce of wheat two years ago was 1875 quintals.