What is the approximate compounded average annual growth rate of the Actual Inflow of FDI over the period 2003 to 2007?
Options:
A .
63%
B .
82%
C .
98%
D .
110%
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+1i.e.(182×182)+1=(32×32)+1≊(220002000)=110.
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