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CUET · MATHS · PYQ PAPER 2025

Mr. X invested Rs. 4, 00, 000 in shares for 5 years.
The value of this investment was Rs. \(4,50,000\) at the end of the second year, Rs. \(4,90,000\) at the end of the third year and on maturity, the final value stood at Rs. \(6,00,000\).
The compound annual growth rate (CAGR) of this investment is :
[Given that \((1.5)^{1 / 5}=1.084\) ]

  1. A \(8.4 \%\)
  2. B \(10.8 \%\)
  3. C \(9.084 \%\)
  4. D \(11 \%\)
Verified Solution

Answer & Solution

Correct Answer

(A) \(8.4 \%\)

Step-by-step Solution

Detailed explanation

\( CAGR = \left(\frac{\text{Ending Value}}{\text{Beginning Value}}\right)^{\frac{1}{\text{Number of Years}}} - 1 \) \( CAGR = \left(\frac{6,00,000}{4,00,000}\right)^{\frac{1}{5}} - 1 \) \( CAGR = \left(1.5\right)^{\frac{1}{5}} - 1 \) \( CAGR = 1.084 - 1 \)…