Options
-
54.90%
Correct answer
- B
69.75%
- C
70.80%
- D
125%
Why this is the answer
CAGR is calculated using the formula {(Ending Value / Beginning Value)^(1/Number of Years) − 1}, which gives {(12,000 / 5,000)^(1/2) − 1} = 54.90%, since the investment period is approximately two years.
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