Explanation:

- The town's total population is 2800.

- The number of males is 720 more than the number of females.

- Let the number of females be \( x \).

- So, the number of males is \( x + 720 \).

- The equation for the total population: \( x + x + 720 = 2800 \).

- Solving gives: \( 2x + 720 = 2800 \) ? \( 2x = 2080 \) ? \( x = 1040 \).

- Males = \( 1040 + 720 = 1760 \).

- 40% reduction in males: \( 1760 \times 0.60 = 1056 \).

- 20% increase in females: \( 1040 \times 1.20 = 1248 \).

- New population: \( 1056 + 1248 = 2304 \).

- Answer: Option 3 - 2304