Question Details

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?

Options

A

135.68

B

138.35

C

140.17

D

143.34

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:

g1=105-9595×100=1095×10010.5263%

2. Increase from 2016-17 to 2017-18:

g2=115-105105×100=10105×1009.5238%

3. Increase from 2017-18 to 2018-19:

g3=126-115115×100=11115×1009.5652%

4. Increase from 2018-19 to 2019-20:

g4=132-126126×100=6126×1004.7619%

Step 2: Calculate the average annual growth rate over the period.

Average Growth Rate=10.5263+9.5238+9.5652+4.76194=34.377248.5943%

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%:

Value2020-21=132×(1+8.5943100)=132×1.085943143.34

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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