MAT Exam 2023 Paper

Concept:Average annual percentage growth rate is the total percentage increase divided by the number of years.Explanation:For India, FDI inflow increases from $4$ to $7$ million dollars over Year I to Year III.Total increase $= 7 - 4 = 3$.Average annual growth rate of India $= \frac{3}{4} \times 100 \times \frac{1}{3} = 25\%$.For Nepal, FDI inflow increases from $4.5$ to $6$ million dollars.Total increase $= 6 - 4.5 = 1.5$.Average annual growth rate of Nepal $= \frac{1.5}{4.5} \times 100 \times \frac{1}{3} = \frac{100}{9}\%$.Difference in average annual growth rates $= 25\% - \frac{100}{9}\% = \frac{125}{9}\%$.Required percentage $= \frac{\frac{125}{9}\%}{\frac{100}{9}\%} \times 100 = 125\%$.Answer:Option D. 125%