Question

In which year did the average disbursement of loans record the highest percentage increase over that of the previous year?

• A. 1984
• B. 1986
• C. 1985
• D. 1983

Hint:

To find percentage increase in averages, compute average per year and compare incrementally using \( \frac{\text{New} - \text{Old}}{\text{Old}} \times 100 \).

Answer 1

The Correct Option is B

Step 1: Total disbursements and number of banks per year 
From the table: \begin{align} \text{1982: } & \frac{118}{5} = 23.6 
\text{1983: } & \frac{120}{5} = 24 \quad (\text{increase } \frac{24 - 23.6}{23.6} \approx 1.69%) 
\text{1984: } & \frac{140}{5} = 28 \quad (\text{increase } \frac{28 - 24}{24} = 16.67%) 
\text{1985: } & \frac{154}{5} = 30.8 \quad (\text{increase } \frac{30.8 - 28}{28} = 10%) 
\text{1986: } & \frac{203}{5} = 40.6 \quad (\text{increase } \frac{40.6 - 30.8}{30.8} \approx 31.82%) 
\end{align}

 Step 2: Compare year-on-year percentage increases 
- 1983 over 1982: \( \approx 1.69% \) 
- 1984 over 1983: \( \approx 16.67% \) 
- 1985 over 1984: \( \approx 10% \) 
- 1986 over 1985: \( \approx 31.82% \) 

Conclusion: 1986 has the highest increase.

Correction: The correct answer is (b) 1986