The next three (3) items are based on the following data, where profits of four companies during the year 2016 to 2020 are displayed in rupees thousand crore :
| Year | Company | |||
| A | B | C | D | |
| 2016 | 7 | 1.5 | 4 | 20 |
| 2017 | 14 | 2 | 10 | 22 |
| 2018 | 25 | 6 | 14 | 23 |
| 2019 | 30 | 7 | 15 | 21 |
| 2020 | 34 | 7 | 12 | 25 |
Which company had maximum growth rate in profit with respect to the previous year in single year during the period 2016-2020?
A
B
C
D
Answer is Right!
Answer is Wrong!
This question was previously asked in
UPSC CBI DSP LDCE – 2023
Growth Rate = ((Profit in Current Year – Profit in Previous Year) / Profit in Previous Year) * 100%
Company A: Max growth = ((14 – 7) / 7) * 100% = 100% (2017 vs 2016)
Company B: Max growth = ((6 – 2) / 2) * 100% = 200% (2018 vs 2017)
Company C: Max growth = ((10 – 4) / 4) * 100% = 150% (2017 vs 2016)
Company D: Max growth = ((22 – 20) / 20) * 100% = 10% (2017 vs 2016)
Comparing the maximum single-year growth rates (100%, 200%, 150%, 10%), the highest is 200%, achieved by Company B.
A: 2018 vs 2017: (25-14)/14 ≈ 78.6%; 2019 vs 2018: (30-25)/25 = 20%; 2020 vs 2019: (34-30)/30 ≈ 13.3%
B: 2019 vs 2018: (7-6)/6 ≈ 16.7%; 2020 vs 2019: (7-7)/7 = 0%
C: 2018 vs 2017: (14-10)/10 = 40%; 2019 vs 2018: (15-14)/14 ≈ 7.1%; 2020 vs 2019: (12-15)/15 = -20%
D: 2018 vs 2017: (23-22)/22 ≈ 4.5%; 2019 vs 2018: (21-23)/23 ≈ -8.7%; 2020 vs 2019: (25-21)/21 ≈ 19.0%
The maximum among all these single-year growth rates is indeed 200% for Company B.