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DIRECTIONS for the question: Analyse the graph/s given below and answer the question that follows.
The following question based on the Diagram below, which reports country XX's monthly outward Investment flows to various contries and the World. The FOI figures are reported in US$ Million.
Q. What is the compounded monthly average growth rate of Country XX's overall Outward Investment (in the world category) during the period January 2011 and May 2011?
  • a)
    Approximately 6 percent    
  • b)
    Approximately 7.5 percent    
  • c)
    Approximately 5.75 percent    
  • d)
    Approximately 4.75 percent
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
DIRECTIONSfor the question:Analyse the graph/s given below and answer ...
CAGR = [(Final/Initial)1 No. of Periods - 1] x 100
So, CAGR  = (3701/3075)1/4  - 1] x 100 = 4.74%
Hence option 4 
Alternatively
it can be seen the total growth happens to be around 21% in with four increases. As per the simple growth rate as well it has to be 21/4 = 5.25%.
Now for the same total growth, the compounded rate has to be lesser than the simple rate. Only the fourth option given is lesser than that.
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DIRECTIONSfor the question:Analyse the graph/s given below and answer the question that follows.The following question based on the Diagram below, which reports country XXs monthly outward Investment flows to various contries and the World. The FOI figures are reported in US$ Million.Q. What is the compounded monthly average growth rate of Country XXs overall Outward Investment (in the world category) during the period January 2011 and May 2011?a)Approximately 6 percent b)Approximately 7.5 percent c)Approximately 5.75 percent d)Approximately 4.75 percentCorrect answer is option 'D'. Can you explain this answer?
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DIRECTIONSfor the question:Analyse the graph/s given below and answer the question that follows.The following question based on the Diagram below, which reports country XXs monthly outward Investment flows to various contries and the World. The FOI figures are reported in US$ Million.Q. What is the compounded monthly average growth rate of Country XXs overall Outward Investment (in the world category) during the period January 2011 and May 2011?a)Approximately 6 percent b)Approximately 7.5 percent c)Approximately 5.75 percent d)Approximately 4.75 percentCorrect answer is option 'D'. Can you explain this answer? for CAT 2024 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about DIRECTIONSfor the question:Analyse the graph/s given below and answer the question that follows.The following question based on the Diagram below, which reports country XXs monthly outward Investment flows to various contries and the World. The FOI figures are reported in US$ Million.Q. What is the compounded monthly average growth rate of Country XXs overall Outward Investment (in the world category) during the period January 2011 and May 2011?a)Approximately 6 percent b)Approximately 7.5 percent c)Approximately 5.75 percent d)Approximately 4.75 percentCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for CAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for DIRECTIONSfor the question:Analyse the graph/s given below and answer the question that follows.The following question based on the Diagram below, which reports country XXs monthly outward Investment flows to various contries and the World. The FOI figures are reported in US$ Million.Q. What is the compounded monthly average growth rate of Country XXs overall Outward Investment (in the world category) during the period January 2011 and May 2011?a)Approximately 6 percent b)Approximately 7.5 percent c)Approximately 5.75 percent d)Approximately 4.75 percentCorrect answer is option 'D'. Can you explain this answer?.
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