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Jemina invested ₹ 50,000 in a mutual fund in 2019. The value of the mutual fund increased to ₹ 80,000 in 2024. The percentage of CAGR (Compound Annual Growth Rate) of her investment is: [Use (1.6)1/5=1.098(1.6)^{1/5} = 1.098]

Solution

✅ Correct Option: 2

CAGR =(8000050000)1/5−1=(1.6)1/5−1=1.098−1=0.098= \left(\frac{80000}{50000}\right)^{1/5} - 1 = (1.6)^{1/5} - 1 = 1.098 - 1 = 0.098, i.e. 9.8 percent.

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