Calculate Compound Annual growth rate
Posted by Rock on April 08, 2001 11:42 AM
Does anyone know how to calculate a CAGR (compound annual growth rate)? And what is the purpose of this rate?
Posted by Scott R on April 09, 2001 2:07 PM
If $100 grows to $125 in 3 years, the CAGR = RATE(3,,-100,125) = 7.72%. Annual return is a common investing benchmark.
