Answer: 10.7%.

The correct answer is **A (10.7%)**. The compound annual growth rate (CAGR) is calculated using the formula: \[ g = \left( \frac{FV}{PV} \right)^{\frac{1}{N}} - 1 \] where: - \( FV \) is the future value (1.5 times the present value), - \( PV \) is the present value (assumed to be 1 for simplicity), - \( N \) is the number of periods (4 years). Substituting the values: \[ g = (1.5)^{\frac{1}{4}} - 1 \approx 0.10668 \text{ or } 10.7\% \] **Option B (11.8%)** is incorrect as it uses a logarithmic approach, which is not applicable here. **Option C (12.5%)** is incorrect as it simply divides the total growth by the number of years, ignoring compounding effects.

Author: LeetQuiz Editorial Team