pls help!

[vandita24x7]

For an economy consumption-income ratio is given to be .72. incremental capital output ratio is 4 and rate of population growth is 3% p.a. What is the growth rate of per capita income?

 a)9%

b)1%

c)7%

d)4%

[Akshay Jain]

is it 3%????

[Akshay Jain]

sry....is it 4%???

[vandita24x7]

yes 4%
 pls show ur approach.. complete solving...

[RHIDIMA]

we have, C/Y=0.72 & K/Y=4
Solving for S, we get:
C=0.72Y
Y=C+S
S=0.28Y
So putting all the values in the growth eqn-
S/K/Y=n+g
we get g=0.04(or 4%)