Question
What is the approximate compounded average annual growth rate of the Actual Inflow of FDI over the period 2003 to 2007?
Answer: Option B
:
B
Actual Inflow of FDI
In 2003 = Rs. 2,000 crs.
In 2007 = Rs. 22,000 crs.
CAGR = (220002000)14−1=4√11−1≈1.82−1=0.82=82%
You can also use the reverse approach. Choose a middle answer option. If 82% is the answer
then 1.84+1 i.e.(182×182)+1=(32×32)+1≊(220002000)=110.
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:
B
Actual Inflow of FDI
In 2003 = Rs. 2,000 crs.
In 2007 = Rs. 22,000 crs.
CAGR = (220002000)14−1=4√11−1≈1.82−1=0.82=82%
You can also use the reverse approach. Choose a middle answer option. If 82% is the answer
then 1.84+1 i.e.(182×182)+1=(32×32)+1≊(220002000)=110.
Was this answer helpful ?
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