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The fomula for calculating compound annual growth rate of an investment is:

[F.V = final value of the investment, P.V = starting value of the investment, n = investment period]

Solution

✅ Correct Option: 3

CAGR is the constant annual rate rr satisfying P.V(1+r)n=F.VP.V(1+r)^n=F.V.

Solving, 1+r=(F.VP.V)1/n1+r=\left(\frac{F.V}{P.V}\right)^{1/n}, so r=(F.VP.V)1/n−1r=\left(\frac{F.V}{P.V}\right)^{1/n}-1.

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