CUET · MATHS · PYQ PAPER 2025
Ram had invested Rs. 15,000 in a mutual fund and the value of the investment at the time of redemption was Rs. 25,000. If the compound annual growth rate (CAGR) is 8.88%, then the number of years for which Ram has invested the amount is: [Given: log 1.089 = 0.0370 and log 1.667 = 0.2220]
- A 6 years
- B 5 years
- C 7 years
- D 4 years
Answer & Solution
Correct Answer
(A) 6 years
Step-by-step Solution
Detailed explanation
\(FV = PV \times (1 + r)^n\) \(25000 = 15000 \times (1 + 0.0888)^n\) \(25000 / 15000 = (1.0888)^n\) \(1.667 \approx (1.089)^n\) \(\log(1.667) = n \times \log(1.089)\) \(n = \log(1.667) / \log(1.089)\) \(n = 0.2220 / 0.0370\) \(n = 6\) years
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