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OpenStudy (anonymous):
how do i calculate CAGR?
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OpenStudy (anonymous):
hi anyone here?
OpenStudy (tim):
hi Phil!
OpenStudy (tim):
Do you have an example or are you looking for a general explanation?
OpenStudy (anonymous):
not really, my teacher asked me
OpenStudy (shadowfiend):
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
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OpenStudy (shadowfiend):
in revenue, sorry.
OpenStudy (heisenberg):
I know it depends on a timespan and starting/ending values.
OpenStudy (sid1729):
Suppose the number of years you want to calculate it over is n. The rate is the nth root of total annual growth rate
OpenStudy (heisenberg):
\[CAGR = \frac{V(t_n)}{V(t_0)}^\frac{1}{t_n - t_0} - 1\]
OpenStudy (tim):
did you answer back? I hope you got the explanation to her in time :)
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OpenStudy (heisenberg):
\[t_n - t_0\] represents the time span
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