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Not sure, I know what method they are referencing.
However the question is taking a percentage, of Pinecrest's population to get Lakewood's population.
You can write that as:
Lakewood's population is 21 / 25 = 0.84 of Pinecrest.
Of is usually equal to multiplication in word problems so:
\[18,000 \times 0.84 = \cdots\]
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Correct. That is what Lakewood's population is, however I do not know if that is using the method they wanted.
I think your correct.
I am pretty sure I am, just I do not think I am using the method they wanted to be used to solve the problem. Mathematics allows multiple ways to solve one problem, so the answer would be the same regardless.