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Applied Mathematics · 2024 · 2 marks

CBSE 2024 · Central · Set 4 · Q25

(a) Assume an investment's starting value is ₹ 20,000 and it grows to ₹ 50,000 in 3 years. Calculate CAGR (Compounded Annual Growth Rate) [Use:…

(a)
Assume an investment's starting value is ₹ $\displaystyle 20,000$ and it grows to ₹ $\displaystyle 50,000$ in $\displaystyle 3$ years. Calculate CAGR (Compounded Annual Growth Rate) [Use : $\displaystyle (2.5)^{1 / 3}=1.355$]
OR
(b)
A man bought an item for ₹ $\displaystyle 12$,000. At the end of the year, he decided to sell it for ₹ $\displaystyle 15$,000. If the inflation rate was $\displaystyle 6$%, find the nominal and real rate of return.

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