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anonymous

  • 5 years ago

how do i calculate CAGR?

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  1. anonymous
    • 5 years ago
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    hi anyone here?

  2. tim
    • 5 years ago
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    hi Phil!

  3. tim
    • 5 years ago
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    Do you have an example or are you looking for a general explanation?

  4. anonymous
    • 5 years ago
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    not really, my teacher asked me

  5. shadowfiend
    • 5 years ago
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    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

  6. shadowfiend
    • 5 years ago
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    in revenue, sorry.

  7. heisenberg
    • 5 years ago
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    I know it depends on a timespan and starting/ending values.

  8. sid1729
    • 5 years ago
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    Suppose the number of years you want to calculate it over is n. The rate is the nth root of total annual growth rate

  9. heisenberg
    • 5 years ago
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    \[CAGR = \frac{V(t_n)}{V(t_0)}^\frac{1}{t_n - t_0} - 1\]

  10. tim
    • 5 years ago
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    did you answer back? I hope you got the explanation to her in time :)

  11. heisenberg
    • 5 years ago
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    \[t_n - t_0\] represents the time span

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