The following table shows Net National Income (in Lac Crore) and Per capita Net National Income (in thousand) of India during the 5 year period from the year 2015-16 to 2019-20. Based on the data in the table, answer the questions that follow
| Year | Net National Income (in Lac, Crore rupees) |
Per Capita Net National Income (in thousand rupees) |
| 2015-16 | 122 | 95 |
| 2016-17 |
136 |
105 |
| 2017-18 |
151 |
115 |
| 2018-19 |
167 |
126 |
| 2019-20 |
177 |
132 |
Assuming that the per capita Net national Income grows beyond the year 2019-20 at the average annual rate of increase (%) of the period (2015-16 to 2019-20), what will be its value (in thousand `) at the end of the year 2020-21?
Correct Answer :
143.34
Solution :
The correct option is 143.34.
To find the estimated per capita Net National Income at the end of the year 2020-21, we first need to determine the annual growth rates in per capita Net National Income from 2015-16 to 2019-20 and then calculate their average.
From the table, the per capita Net National Income (in thousand rupees) for each year is:
- 2015-16: 95
- 2016-17: 105
- 2017-18: 115
- 2018-19: 126
- 2019-20: 132
Step 1: Calculate the annual percentage increase for each consecutive year.
1. Increase from 2015-16 to 2016-17:
2. Increase from 2016-17 to 2017-18:
3. Increase from 2017-18 to 2018-19:
4. Increase from 2018-19 to 2019-20:
Step 2: Calculate the average annual growth rate over the period.
Step 3: Calculate the expected value at the end of 2020-21.
Using the 2019-20 value of 132 thousand rupees and growing it by the average annual growth rate of 8.5943%:
Thus, the estimated per capita Net National Income at the end of the year 2020-21 is 143.34 thousand rupees.
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