Average Annual Growth Rate


Also found in: Acronyms.

Average Annual Growth Rate

The average growth of an investment over a given number of years. It is calculated simply by adding together the growth rate in each year in question and dividing by the number of years. For example, if a portfolio grows 10% in year 1, -5% in year 2, and 6% in year 3, the average annual growth rate is calculated as (10 - 5 + 6) / 3 = 3.67%.
References in periodicals archive ?
4 million units in 2002, while sales of tires to the replacement market will see an average annual growth rate of 1.
According to Mastio & Company's latest PE Film Market Study, producers of juvenile and adult hygiene films consumed an estimated 550 million lb of resin in 2002, which will grow to a projected 619 million lb in 2006 with an average annual growth rate of 3.

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