Mr Naresh has bought 200 shares of city look company at ₹100 each in 2015. After selling them he has received ₹30000 which accounts for 22.47% CAGR. Calculate the number of years for which he was holding the shares.

2 years

The correct answer is option (4) : 2 years

P.V. $= ₹100 × 200= ₹ 20, 000$

$F.V. = ₹ 30,000$

$CAGR= 22.47$%, n = ?

Since CAGR% = $\left[\left(\frac{F.V.}{P.V.}\right) ^{1/n}-1\right]×100$

$22.47=\left[\left(\frac{30000}{20000}\right)^{1/n}-1\right]×100$

$\frac{22.47}{100}+1=\left(\frac{3}{2}\right)^{1/n}$

$\left(\frac{3}{2}\right)^{1/n}=1.2247$%

$\frac{1}{n}log1.5=log1.2247$

$n=\frac{log1.5}{log 1.2247}$

$n=\frac{0.1761}{0.0882}= 1.996 $ i.e 2 years

Hence , n = 2 years