This hints at the fact that the population was increasing at the rate of 2
percent per year.
This assumes a crude approximation at each timestep, and that percentages are additive, not multiplicative. (In fact, your logic will generally always result in this answer, regardless of how you divide up the time intervals.)
Suppose, in a strange world, that I am given two discounts on a $\$100$ bill: a $50\%$ discount, and a $25\%$ discount. Assume these are applied in order to the bill, and affect the total price of the bill post discounts.
Your logic seems to suggest a $75\%$ discount in the end, and a final bill of $\$25$. However, you would have $\$100 \cdot 0.5 \cdot 0.75 = \$37.50$ instead.
If you have a population of $100$ people that grows at $2\%$ per year, then you have
$$
100 \cdot 1.02 = 102
$$
people after one year;
$$
102 \cdot 1.02 = 100 \cdot 1.02^2
$$
after two years;
$$
100 \cdot 1.02^3
$$
after three, and so on. However, if you do this for $100$ years, you get
$$
100 \cdot 1.02^{100} \approx 724
$$
people. On the other hand, a population that grows by $2 \times 100\%=200\%$ after $100$ years only has
$$
100 \cdot 2 = 200
$$
people.
This is how exponential growth essentially works: growth based on a multiple of the previous population. Loosely,
$$
P(t+\Delta t) \approx P(t) + \Delta t P'(t)
$$
where $P$ is the population, and $t$ a time variable. (Assume $\Delta t$ is small.) Phrased differently,
$$
\frac{dP}{dt} = k P
$$
for some constant $k$: the rate at which the number grows is proportional to the value itself. Note in particular we have to use continuously varying quantities in this process.
In your model, you start with a population $P$, and poof $P/50$ people into existence the very moment $y$ years is hit, when in reality those people are having children the entire time -- and in theory, those children are themselves also having children, and their children are too. (Think of the Fibonacci bunnies.) You need to account for this continual growth more appropriately to get an accurate answer.
Another analogy you may find useful is the difference between interest compounded $n$ times per year, versus continuously-compounded interest.
Solve the differential equation given for the appropriate $k$ to figure out a closed form for $P(t)$, and then you can handle matters accordingly.