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Vishal invested ₹20,000 in Tata stocks for 6 years. The value of the investment at the end of each year is given below:

Year 1Year 2Year 3Year 4Year 5Year 6
₹20,000₹23,500₹24,000₹24,800₹25,000₹28,000

The CAGR % of his investment is: [use (1.4)1/6=1.058(1.4)^{1/6}=1.058]

Solution

✅ Correct Option: 3

CAGR =(2800020000)1/6−1=(1.4)1/6−1=\left(\frac{28000}{20000}\right)^{1/6}-1=(1.4)^{1/6}-1.

Using the supplied value, this is 1.058−1=0.0581.058-1=0.058, i.e. 5.8%5.8\%.

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