Statistics & Applications

Financial Math

Medium

applied

An investment of ₹ 3,00,000 becomes ₹ 4,50,000 in 5 years, then the compound annual growth rate (CAGR) is equal to:

[Given that: $(1.5)^{1/5} = 1.084$ ]

11%

10%

8.4 %

3.3%

✅ Correct Option: 3

The CAGR formula is:

$\text{CAGR} = \left[\left(\frac{\text{Final Value}}{\text{Initial Value}}\right)^{1/n} - 1\right] \times 100\%$

where $n$ is the number of years.

Given information:

Starting Investment = ₹ 3,00,000

Final Amount = ₹ 4,50,000

Time Period = 5 years

$(1.5)^{1/5} = 1.084$

The ratio of final to initial value:

$\frac{\text{Final Value}}{\text{Initial Value}} = \frac{4,50,000}{3,00,000}$

$= \frac{450}{300}$

$= \frac{3}{2}$

$= 1.5$

Substituting into the CAGR formula:

$\text{CAGR} = \left[(1.5)^{1/5} - 1\right] \times 100\%$

Using the given value $(1.5)^{1/5} = 1.084$ :

$\text{CAGR} = [1.084 - 1] \times 100\%$

$\text{CAGR} = 0.084 \times 100\%$

$\text{CAGR} = 8.4\%$

Therefore, the compound annual growth rate (CAGR) is 8.4%.

2025: 27 May Shift 1

If an asset costs Rs. 50,000 with an estimated useful life of 6 years and a scrap value of Rs. 5000. Then by using a linear depreciation method, the annual depreciation of the asset will be:

2025: 13 May Shift 1

If the money is worth 8% per annum compounded semi-annually, then the present value of a sequence of payments of ₹1,000 made at the end of every 6 months and continuing forever, is:

2025: 13 May Shift 1

If the price of a machinery costing ₹ 25000 is expected to have a useful life of 4 years and a scrap value of ₹ 5000. Then the annual depreciation by linear method is:

2025: 27 May Shift 1

Mohini purchases a house worth Rs. 50 lakhs and makes a down payment of Rs. 11.2 lakhs. She pays the remaining amount on monthly EMI using a reducing balance method. The bank charges 6% per annum compounded monthly for a tenure of 25 years. Her EMI is:

[Given: $(1.005)^{-300} \approx 0.224$ ]

2025: 3 June Shift 1

Match List-I with List-II

List-I	List-II
(A) Perpetuity	(I) A person deposits a fixed amount every year in his bank account to renovate his house after 10 yrs.
(B) EMI	(II) A person depositis an amount regularly in his bank account and withdraws in case of need.
(C) Sinking Fund	(III) A fixed amount is debited from the bank account of a person, every month, against a personal loan.
(D) Saving Account	(IV) A person purchased a house and rents it out.

Choose the correct answer from the options given below:

2026: 31 May Shift 2

Which of the following statements are true about the sinking fund ?

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

B. Sinking fund can be used in an emergency.

C. In the sinking fund, any amount, anytime, can be deposited.

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

Choose the correct answer from the options given below:

An investment of ₹ 3,00,000 becomes ₹ 4,50,000 in 5 years, then the compound annual growth rate (CAGR) is equal to: [Given that: (1.5)1/5=1.084(1.5)^{1/5} = 1.084(1.5)1/5=1.084]

Solution

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CUET Mathematics Past Year Questions (Topic-Wise)

An investment of ₹ 3,00,000 becomes ₹ 4,50,000 in 5 years, then the compound annual growth rate (CAGR) is equal to:

[Given that: $(1.5)^{1/5} = 1.084$ ]