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CUET · MATHS · PYQ PAPER 2025

Ram invested Rs. 20,000 in a mutual fund in the year 2012.
The value of the mutual fund increased to Rs. 32,000 in the year 2017.
The compound annual growth rate (CAGR) of his investment is (Given : \((1.6)^{\frac{1}{5}}=1.098\))

  1. A \(10.8 \%\)
  2. B \(7.8 \%\)
  3. C \(9.8 \%\)
  4. D \(6.8 \%\)
Verified Solution

Answer & Solution

Correct Answer

(C) \(9.8 \%\)

Step-by-step Solution

Detailed explanation

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