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) \({ }^{1 / 5}=1.098\) ]
- A \(8.5 \%\)
- B \(10 \%\)
- C \(9.8 \%\)
- D \(9.1 \%\)
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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