Assume an investment's starting value is Rs. 10,000 and it grows to Rs. 60,000 in 4 years, then the CAGR % of the investment is,
[given : \( (6)^{1/4}=1.565 \)]
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → 56.5%
The compound annual growth rate is
\( \displaystyle \text{CAGR}=\left(\frac{\text{Final value}}{\text{Initial value}}\right)^{\frac{1}{n}}-1 \)
\( \displaystyle =\left(\frac{60000}{10000}\right)^{\frac{1}{4}}-1 \)
\( =(6)^{1/4}-1 \)
\( =1.565-1=0.565=56.5\% \)
CBSE Applied Mathematics (Class XII):
Compound Annual Growth Rate
