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CUET · MATHS · PYQ PAPER 2025

A person invested ₹ \(10000\) in a stock of a company for \(6\) years.
The value of his investment at the end of each year is given below:
201820192020202120222023
₹11000₹11500₹13000₹11800₹12200₹14000
The compound annual growth rate (CAGR) of his investment is:
[Given (1.4) \({ }^{\frac{1}{8}}=1.058\) ]

  1. A \(5.8\%\)
  2. B \(4.2\%\)
  3. C \(6.8\%\)
  4. D \(3.2\%\)
Verified Solution

Answer & Solution

Correct Answer

(A) \(5.8\%\)

Step-by-step Solution

Detailed explanation

\( \text{CAGR} = \left( \frac{\text{FV}}{\text{PV}} \right)^{\frac{1}{n}} - 1 \) \( \text{CAGR} = \left( \frac{14000}{10000} \right)^{\frac{1}{8}} - 1 \) \( \text{CAGR} = (1.4)^{\frac{1}{8}} - 1 \) \( \text{CAGR} = 1.058 - 1 \) \( \text{CAGR} = 0.058 = 5.8\% \)
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