Jemina invested Rs. 50,000 in a mutual fund in 2019. The value of the mutual fund increased to Rs. 80,000 in 2024. The percentage of CAGR (Compound Annual Growth Rate) of her investment is: (Use \( (1.6)^{1/5}=1.098 \))
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → 9.8%
From 2019 to 2024 is n = 5 years. By the CAGR formula,
\( \displaystyle \text{CAGR}=\left(\frac{\text{Final value}}{\text{Initial value}}\right)^{1/n}-1 \)
\( \displaystyle =\left(\frac{80000}{50000}\right)^{1/5}-1 \)
\( \displaystyle =(1.6)^{1/5}-1 \)
\( \displaystyle =1.098-1 \)
\( \displaystyle =0.098=9.8\% \)
CBSE Applied Mathematics (Class XII):
Compound Annual Growth Rate
