Mathematics 76 Online
OpenStudy (anonymous):

how do i calculate CAGR?

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

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

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 :)

OpenStudy (heisenberg):

$t_n - t_0$ represents the time span

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