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Sir/madam,
Kindly explain the logic behind this answer. Please note that similar question (question number 42 in our SFM module provided) is done under different method.
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The concept is same. They are just mathematically different.
In Q – 42 , (1-g)^3 = 10/20 , i.e. g = 29.29 % (Negative) .
Growth rate at end of first year of transition stage = 20% – 29.29 % = 14.14 %.
Concept to be Kept in Mind – You have to focus on calculating the De-growth per Annum. That’s it.