Mr. X invested ₹20,000 in year 2022 for 5 years. If Compound annual growth rate for that investment turned out to be 12%, the end value of the investment will be : {Use $(1.12)^5=1.76$}
Answer & explanation
Correct answer: option 4
$\text{Initial investment}=20000$
$\text{CAGR}=12\%=0.12$
$\text{Time}=5\text{ years}$
$\text{Future value}=20000(1.12)^5$
$=20000\times1.76$
$=35200$
The end value of the investment is ₹35200.