If the health expenditure in 2005 is 198000 cr, then the annual increase in the period 2001 to 2005 is nearest to ?
Options:
A .
15 %
B .
20 %
C .
25 %
D .
30 %
Answer: Option C : C CAGR = (Final valueinitial value)1/n−1, here n = 4 Here (Final valueinitial value)= 2.544 Going from answer options Assuming a middle answer option= 25% Then (1.25)4 should give us something close to 2.5 if it is the correct answer option
(1.25)4=(1.254×1.254)=(15.6×15.6)≈2.4. Thus this is the correct answer
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