Question

A company's profit (in lakhs) is: 2010 (40), 2011 (50), 2012 (60). What is the percentage growth from 2010 to 2012?

• A. 40%
  
• B. 50%
  
• C. 60%
  
• D. 70%
  

Hint:

For multi-year growth, calculate total percentage change directly from initial to final value.

Answer 1

The Correct Option is B

- Step 1: Extract data. Profit 2010 = 40, 2012 = 60.
- Step 2: Calculate increase. Increase = $60 - 40 = 20$.
- Step 3: Compute percentage growth. $\left( \frac{20}{40} \right) \times 100 = \frac{20}{40} \times 100 = 50%$.
- Step 4: Verify. $40 \times 1.5 = 60$, confirming 50% growth.
- Step 5: Compare with options. Options: (1) 40%, (2) 50%, (3) 60%, (4) 70%. Matches 50%.
- Step 6: Cross-check. 2011 = 50, so 2010 to 2011 = $\frac{50-40}{40} \times 100 = 25%$, 2011 to 2012 = $\frac{60-50}{50} \times 100 = 20%$. Total growth = 50%.
- Step 7: Conclusion. Option (2) is correct.