Question

how do i calculate CAGR?

Answer 1

hi anyone here?

Answer 2

hi Phil!

Answer 3

Do you have an example or are you looking for a general explanation?

Answer 4

not really, my teacher asked me

Answer 5

I think it can be calculated as the geometric mean of the decimal multiplier equivalents (i.e. +3% becomes 1.03 and -2% becomes 0.98) of the individual period-over-period changes in

Answer 6

in revenue, sorry.

Answer 7

I know it depends on a timespan and starting/ending values.

Answer 8

Suppose the number of years you want to calculate it over is n.
The rate is the nth root of total annual growth rate

Answer 9

\[CAGR = \frac{V(t_n)}{V(t_0)}^\frac{1}{t_n - t_0} - 1\]

Answer 10

did you answer back? I hope you got the explanation to her in time :)

Answer 11

\[t_n - t_0\] represents the time span