The present population of a town is 28000.

Here,

$\mathrm{P}=$ Initial population $=28,000$

$\mathrm{R}=$ Rate of growth of population $=5 \%$ per annum

$\mathrm{n}=$ Number of years $=2$

$\therefore$ Population after two years $=\mathrm{P}\left(1+\frac{\mathrm{R}}{100}\right)^{\mathrm{n}}$

$=28,000\left(1+\frac{5}{100}\right)^{2}$

$=28,000(1.05)^{2}$

$=30,870$

Hence, the population after two years will be 30,870 .