A fund of ₹80,000 grows at a CAGR of 5% for 2 years. What is it worth at the end?

Explanation

1. 01

   At a constant 5% a year: $80{,}000 \times (1.05)^{2}$.

2. 02

   $= 80{,}000 \times 1.1025 = 88{,}200$ rupees.