If an investment value get doubled in 10 years then its compound annual growth rate (CAGR) is: (Given $2^{1/10} = 1.0729$)
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → 7.29%
Let the compound annual growth rate be r.
Value doubles in 10 years ⇒ Final Value = 2 × Initial Value
CAGR formula: $(1 + r)^{10} = 2$
Take 10th root: $1 + r = 2^{1/10} = 1.0729$
$r = 1.0729 - 1 = 0.0729 = 7.29%$