A startup company invested ₹ \(5,00,000\) in shares for 4 years. The value of the investment was: ₹ \(5,50,000\) at the end of first year, ₹ \(5,25,000\) at the end of third year, and on maturity, the final value stood ₹ \( 6,25,000\). The CAGR on the investment will be : [Given : \((1.25)^{\frac{1}{4}}=1.06\)]

Apply the relevant identity from the chapter and substitute the values established in the previous step, keeping the original constraint in view.

Use the simplified expression to isolate the unknown, then plug the result back into the question setup to confirm the working is internally consistent.

Cross-check against a boundary or limiting case. Both the dimensional balance and the qualitative behaviour at the extreme should agree with the candidate answer.

Combine the steps above to identify the correct option. The remaining choices each fail at least one of the consistency, dimensional, or boundary checks.