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CUET · MATHS · PYQ PAPER 2025

Mr. Mittal invested Rs. 20, 000 in a mutual fund in the year 2019.
The value of the mutual fund increased to Rs. 32, 000 in the year 2024. The compound annual growth rate (CAGR) of his investment is :
[Given (1.6) \({ }^{1 / 5}=1.098\) ]

  1. A \(8.5 \%\)
  2. B \(10 \%\)
  3. C \(9.8 \%\)
  4. D \(9.1 \%\)
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Answer & Solution

Correct Answer

(C) \(9.8 \%\)

Step-by-step Solution

Detailed explanation

\(CAGR = \left(\frac{\text{Ending Value}}{\text{Beginning Value}}\right)^{1/n} - 1\) \(CAGR = \left(\frac{32000}{20000}\right)^{1/5} - 1\) \(CAGR = (1.6)^{1/5} - 1\) \(CAGR = 1.098 - 1\) \(CAGR = 0.098 = 9.8\%\)
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