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CUET · MATHS · PYQ PAPER 2025

Rahul invested ₹ 20000 in a mutual fund in year 2018. If the value of mutual fund increased to ₹ 32000 in year 2023, then the compound annual growth rate of his investment is : [given that \((1.6)^{\frac{1}{5}}=1.098\) ]

  1. A \(10.5\%\)
  2. B \(9.4\%\)
  3. C \(9.8\%\)
  4. D \(8.8\%\)
Verified Solution

Answer & Solution

Correct Answer

(C) \(9.8\%\)

Step-by-step Solution

Detailed explanation

\(CAGR = \left(\frac{FV}{PV}\right)^{\frac{1}{n}} - 1\) \(CAGR = \left(\frac{32000}{20000}\right)^{\frac{1}{5}} - 1\) \(CAGR = (1.6)^{\frac{1}{5}} - 1\) \(CAGR = 1.098 - 1\) \(CAGR = 0.098\) \(CAGR = 9.8\%\)