Morpheus invested ₹10,000 in a crypto currency for 6 years and the value of his investments at the end of each year are given below :
The CAGR of his investment is :
(given that $(1.4)^{1/6}=1.058)$
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 |
| Amount (₹) | 11,000 | 11,500 | 13,000 | 11,800 | 12,200 | 14,000 |
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → 5.8%
The compound annual growth rate (CAGR) is,
$CAGR=\left(\frac{A_1}{A_0}\right)^{1/n}-1$
$=\left(\frac{14,000}{11,000}\right)^{\frac{1}{5}}-1$
$=0.058$
$=5.8\%$