A person has invested Rs.20,000 in 2020 for 5 years. If CAGR for his investment is 11.84%. The end balance of his investment is (Given \((1.1184)^5 = 1.7498\))
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Rs. 34996
The CAGR is the rate at which the investment grows each year with compounding, so over n years
\(\text{End balance} = \text{Beginning balance} \times (1 + r)^n\)
\(= 20000 \times (1.1184)^5\)
\(= 20000 \times 1.7498\)
\(= 34996\)
So the end balance is Rs. 34996.
CBSE Applied Mathematics (Class XII):
Compound Annual Growth Rate
