A trader's yearly turnover rose from ₹40 lakh to ₹50 lakh, and in the following year it rose by the same ₹10 lakh again. Which statement about his growth rate is correct?

Year one: 10/40 = 25%. Year two: the same ₹10 lakh now sits on a base of ₹50 lakh, so 10/50 = 20%. Equal rupees give a smaller per cent each year because the base keeps growing - that is why steady absolute gains look like slowing growth. 'Stayed at 25%' is the trap of reading equal rupees as equal per cents. '16 2/3%' divides by the year-two CLOSING figure of ₹60 lakh instead of its opening figure.