Mathematics · Compound Annual Growth Rate
An analysis of FDI inflows into India's service sector shows a consistent growth pattern. In Year 1, the FDI inflow was 40 billion USD. In Year 2, it grew by 15 percent. In Year 3, due to global geopolitical tensions, the inflow grew by only 5 percent. In Year 4, after a major policy reform, it jumped by 20 percent. Calculate the cumulative FDI inflow over the four-year period and the Compound Annual Growth Rate (CAGR) from Year 1 to Year 4.
- 1Cumulative: 195.40 billion USD; CAGR: 12.8 percent.
- 2Cumulative: 202.10 billion USD; CAGR: 14.2 percent.
- 3Cumulative: 185.50 billion USD; CAGR: 11.5 percent.
- 4Cumulative: 192.26 billion USD; CAGR: 13.1 percent.✓
Correct answer
Cumulative: 192.26 billion USD; CAGR: 13.1 percent.
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