Anisha invested Rs.20000 in a mutual fund in the year 2016, which increased to Rs.36000 in the year 2024. The percentage compounded annual growth rate(CAGR) of her investment is:
(Given: \((1.8)^{1/8} = 1.076\))
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → 7.6% p.a
The compound annual growth rate over n years is
\( \displaystyle \text{CAGR} = \left(\frac{\text{Final value}}{\text{Initial value}}\right)^{1/n} - 1 \)
From 2016 to 2024, n = 8 years:
\( \displaystyle \frac{36000}{20000} = 1.8 \)
\(\text{CAGR} = (1.8)^{1/8} - 1\)
\(\text{CAGR} = 1.076 - 1 = 0.076\)
So the CAGR is 7.6% p.a.
CBSE Applied Mathematics (Class XII):
Compound Annual Growth Rate
