A person invested ₹ 10000 in a stock of a company for 6 years. The value of his investment at the end of each year is given in the following table:

2018	2019	2020	2021	2022	2023
₹ 11000	₹ 11500	₹ 13000	₹ 11800	₹ 12200	₹ 14000

The compound annual growth rate (CAGR) of his investment is:

[Given $(1.4)^{1/6} = 1.058$]

CAGR (Compound Annual Growth Rate) represents the constant percentage by which an investment grows each year to go from the starting amount to the ending amount. It only considers the initial value, final value, and the time period, ignoring intermediate fluctuations.

The CAGR formula is:

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

where $n$ = number of years

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From the given data:

Initial Investment (2018) = ₹10,000

Final Value (2023) = ₹14,000

Number of years $(n)$ = 6

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The ratio of Final to Initial value:

$\frac{\text{Final Value}}{\text{Initial Value}} = \frac{14000}{10000}$

$= 1.4$

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Applying the CAGR formula:

$\text{CAGR} = \left[(1.4)^{1/6} - 1\right] \times 100\%$

Using the given value $(1.4)^{1/6} = 1.058$:

$\text{CAGR} = [1.058 - 1] \times 100\%$

$= 0.058 \times 100\%$

$= 5.8\%$

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Therefore, the compound annual growth rate (CAGR) of the investment is 5.8%.