Statistics & Applications

Financial Math

Medium

applied

Rahul invested ₹ 20000 in a mutual fund in year 2018. If the value of mutual fund increased to ₹ 32000 in year 2023. Then the compound annual growth rate of his investment is: $[given \, that(1.6)^{1/5} = 1.098]$

10.5%

9.4%

9.8%

8.8%

✅ Correct Option: 3

CAGR (Compound Annual Growth Rate) represents the average yearly growth rate of an investment when the growth compounds each year.

Initial Investment (P) = ₹20,000 (in 2018)

Final Value (A) = ₹32,000 (in 2023)

Number of years (n) = 2023 - 2018 = 5 years

Given: $(1.6)^{1/5} = 1.098$

When money grows at a compound rate:

$A = P(1 + r/100)^n$

where $r$ is the rate.

$32000 = 20000(1 + r/100)^5$

$\dfrac{32000}{20000} = (1 + r/100)^5$

$1.6 = (1 + r/100)^5$

Taking the 5th root of both sides:

$(1.6)^{1/5} = 1 + \dfrac{r}{100}$

Using the given value:

$1.098 = 1 + \dfrac{r}{100}$

$0.098 = \dfrac{r}{100}$

$r = 9.8$

Therefore, the compound annual growth rate is 9.8%.

2025: 21 May Shift 1

Anshu takes a personal loan of ₹10,00,000 at the rate of 12% per annum for 2 years, then the EMI by using flat rate method is

2025: 21 May Shift 1

Which of the following statements are correct?

(A) In the sinking fund a fixed amount at regular intervals is deposited.

(B) Sinking fund is a long-term account which can be closed any time.

(D) Sinking fund can be used only for the purpose it was created.

Choose the correct answer from the options given below:

2025: 13 May Shift 1

Which of the following is correct about the compound annual growth rate?

2026: 21 May Shift 2

Geetansh invested ₹27,000 and it grows to ₹81,000 in 2 years. The CAGR % will be:

2026: 30 May Shift 2

Shyamaji takes a loan of ₹20,00,000 with 10% annual interest rate for 10 years. What will be her EMI under flat rate system?

2026: 21 May Shift 2

Mr. Bean wishes to purchase a house for ₹90,00,000 with a down payment of ₹10,00,000 and balance in EMI for 25 years on reducing balance payment basis. If bank charges 6% per annum compounded monthly, then his EMI is;

(Use $(1.005)^{300} = 4.4650$ )

Rahul invested ₹ 20000 in a mutual fund in year 2018. If the value of mutual fund increased to ₹ 32000 in year 2023. Then the compound annual growth rate of his investment is: [given that(1.6)1/5=1.098][given \, that(1.6)^{1/5} = 1.098][giventhat(1.6)1/5=1.098]

Solution

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CUET Mathematics Past Year Questions (Topic-Wise)

Rahul invested ₹ 20000 in a mutual fund in year 2018. If the value of mutual fund increased to ₹ 32000 in year 2023. Then the compound annual growth rate of his investment is: $[given \, that(1.6)^{1/5} = 1.098]$