# Skill-1 Knowing the Terminology

There can be various economic or non-economic terms like CAGR, inflation etc., involved in the data-set, and it is a prerequisite to have a good understanding of these terms.Example

If the production of wheat in 2004 was 100 million tonnes and in 2007 it was 133 million tonnes, then find the

- Percentage Growth,
- SAGR,
- CAGR.

Solution

(A) Percentage Growth = [Growth/Initial value] Ã— 100 = 33%
(B) SAGR (Simple Annual Growth Rate)â€“It is the average growth rate over the given period. It is calculated by dividing the growth percentage by the number of years involved. In the above case, SAGR = 33/3 = 11%

In the above case,

Hence, r = 10% (approx.)