Geetansh invested Rs. 27,000 and it grows to Rs. 81,000 in 2 years. The CAGR % will be:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → 73.2%
The compound annual growth rate is the constant yearly rate that takes the beginning value to the ending value over n years:
\( \displaystyle CAGR=\left(\frac{\text{Ending value}}{\text{Beginning value}}\right)^{\frac{1}{n}}-1 \)
\( \displaystyle =\left(\frac{81000}{27000}\right)^{\frac{1}{2}}-1 \)
\( \displaystyle =\sqrt{3}-1 \)
\( \displaystyle \sqrt{3}-1\approx 1.732-1=0.732 \)
So the CAGR is 73.2%.
CBSE Applied Mathematics (Class XII):
Compound Annual Growth Rate
