CUET · MATHS · PYQ PAPER 2025
A person invested ₹ 20000 in a mutual fund in year 2018. The value of the mutual fund increased to ₹ 32000 in year 2023. The compound annual growth rate of his investment is:
[Given that (1.6) \({ }^{\frac{1}{5}}=1.098\) ]
- A 9.8 %
- B 8.7 %
- C 10 %
- D 7.8 %
Answer & Solution
Correct Answer
(A) 9.8 %
Step-by-step Solution
Detailed explanation
\(\text{Growth factor} = \frac{32000}{20000} = 1.6\) \(\text{Number of years} = 2023 - 2018 = 5\) \(\text{CAGR} = (1.6)^{\frac{1}{5}} - 1\) Using the given approximation \((1.6)^{\frac{1}{6}}=1.098\): \(\text{CAGR} \approx 1.098 - 1 = 0.098\) \(\text{CAGR} \approx 9.8\%\)
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