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Calculate Value of "Interest" from the Following Data: - Economics

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Sum

Calculate value of "Interest" from the following data:

S. No. Particulars

Amount

(₹ in crores)

(i) Indirect tax 1,500
(ii) Subsidies 700
(iii) Profits 1,100
(iv) Consumption of fixed capital 700
(v) Gross domestic product at market price 17,500
(vi) Compensation of employees 9,300
(vii) Interest ?
(viii) Mixed income of self-employed 3,500
(ix) Rent 800
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Solution

Given:
GDPMP = 17,500
NDPFC = GDPMP - Consumption of fixed capital - NIT
NDPFC = 17,500 - 700 - (Indirect Tax - Subsidies)
NDPFC = 17,500 - 700 - (15,00 - 700)
NDPFC = 16,000

NDPFC = Compensation of Employees + Operating Surplus + Mixed Income of Self-Employed
NDPFC = Compensation of Employees + Rent + Interest + Profits + Mixed Income of Self-Employed
16,000 = 9,300 + 800 + Interest + 1,100 + 3,500
Interest = 1,300.

Concept: Gross and Net Domestic Product (GDP and NDP)
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