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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.