Match List-I with List-II.
| List-I | List-II | ||
| (A) | The CAGR when Rs. 20,000 grows to Rs. 24,200 in 2 years | (I) | 2 |
| (B) | The value after 2 years of Rs. 30,000 growing at a CAGR of 20% | (II) | Rs. 20,000 |
| (C) | The sum that grows to Rs. 26,620 in 3 years at a CAGR of 10% | (III) | 10% |
| (D) | The number of years in which Rs. 10,000 grows to Rs. 14,400 at a CAGR of 20% | (IV) | Rs. 43,200 |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (A)-(III), (B)-(IV), (C)-(II), (D)-(I)
The CAGR links the starting value SV, the ending value EV and the number of years n:
\( \text{EV} = \text{SV} \times (1 + \text{CAGR})^n \)
(A) \( \displaystyle\frac{24200}{20000} = 1.21 = (1.1)^2 \), so the CAGR is 10% → (III)
(B) \( 30000 \times (1.2)^2 = 30000 \times 1.44 = 43200 \) → (IV)
(C) \( \displaystyle\frac{26620}{(1.1)^3} = \frac{26620}{1.331} = 20000 \) → (II)
(D) \( \displaystyle\frac{14400}{10000} = 1.44 = (1.2)^2 \), so n = 2 → (I)