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Mr. Rajkumar has invested 20000 in a year 2014 for 5 years. If CAGR for that investment turned out to be 11.84 %. What will be the end balance? |
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Answer» Given t = 5 years Vbegin = 20000 & CAGR = 11.84% \(\because\) CAGR = \([(\frac{V_{final}}{V_{begin}})^{1/t}-1]\times100\) ⇒ 11.84 = \([(\frac{V_{final}}{20000})^{1/5}-1]\times100\) ⇒ 1 + 0.1184 = \((\frac{V_{final}}{20000})^{1/5}\) ⇒ \(\frac{V_{final}}{20000}\) = (1.1184)5 = 1.7498 ⇒ Vfinal = 34996 The end balance will be 34996. |
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