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 \((1.5)^{1 / 5}=1.084\) ]
- A \(8.4 \%\)
- B \(10.8 \%\)
- C \(9.084 \%\)
- D \(11 \%\)
Answer & Solution
Correct Answer
(A) \(8.4 \%\)
Step-by-step Solution
Detailed explanation
\( CAGR = \left(\frac{\text{Ending Value}}{\text{Beginning Value}}\right)^{\frac{1}{\text{Number of Years}}} - 1 \) \( CAGR = \left(\frac{6,00,000}{4,00,000}\right)^{\frac{1}{5}} - 1 \) \( CAGR = \left(1.5\right)^{\frac{1}{5}} - 1 \) \( CAGR = 1.084 - 1 \)…
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