CUET Mathematics 2025 14 May Shift 1 PYQs

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

1. CAGR is calculated by only the final value of an investment.
2. CAGR is calculated by the final and beginning value of an investment.
3. CAGR describes the effect of simple interest.
4. CAGR is calculated by taking arthmetic mean of series of returns.

Which of the following statements are correct about the Compound Annual Growth Rate (CAGR)?

(A) It can be used to compare historical returns on different investment portfolios.

(B) It helps smooth returns when growth rates are expected to be volatile and inconsistent.

(C) It is unable to track the performance of various business measures of one or multiple companies alongside one another.

(D) It can be used to calculate the average growth of a single investment.

Choose the correct answer from the options given below:

Ram invested Rs.20,000 in a mutual fund in the year 2012. The value of the mutual fund increased to Rs.32,000 in the year 2017, then the compound annual growth rate of his investment is (Given that $(1.6)^{\frac{1}{5}} = 1.098$)