Shyam invested ₹2,00,000 in 2019 for 5 years. If the compound annual growth rate (CAGR) for his investment is 10%, then the end balance of his investment is:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → ₹3,22,102
Given: Initial investment $P = ₹200{,}000$, CAGR $= 10\%$, time $n = 5$ years.
Future value with compounding: $A = P(1+r)^n$
$A = 200000\,(1+0.10)^5 = 200000 \times 1.1^5$
$[1.1^5 = 1.61051]$
$A = 200000 \times 1.61051 = 322102$
End balance: ₹3,22,102 (approximately)