CAGR is useful because investments might grow at different rates from year to year. In this guide, we will understand CAGR meaning and how to calculate it in a few simple steps. Whether you are a ...
CAGR = {(Future Value / Investment Value) ^ (1 / n)} - 1 Hence CAGR = {(19,000 / 10,000) ^ (1 / 5)} - 1 That means, we first calculate the 5th root of 1.90 = 1.1369 Now (1.1369 - 1) = 0.1369 or 13 ...
Compound Annual Growth Rate (CAGR) serves as a vital metric in evaluating the steady growth of an investment over time. It is a powerful tool that aids investors in understanding the compounded ...