CUET · MATHS · PYQ PAPER 2025
Which of the following is correct about the compound annual growth rate (CAGR)?
- A CAGR is calculated by only the final value of an investment.
- B CAGR is calculated by the final and beginning value of an investment.
- C CAGR describes the effect of simple interest.
- D CAGR is calculated by taking arithmetic mean of series of returns.
Answer & Solution
Correct Answer
(B) CAGR is calculated by the final and beginning value of an investment.
Step-by-step Solution
Detailed explanation
CAGR is calculated by the final and beginning value of an investment.
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