Shyam invested Rs. 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) → Rs. 3,22,102
The CAGR is the constant yearly rate at which the investment grows, compounded every year. So the end balance is
\( \text{End balance} = 200000\,(1 + 0.10)^5 \)
\( (1.1)^5 = 1.61051 \)
\( 200000 \times 1.61051 = 322102 \)
So the end balance is Rs. 3,22,102.