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Compound Growth Rate |
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Compound growth rate
Compound Growth Rate Average, year-on-year growth rate of an investment over a number of years. While investments usually do not grow at a constant rate, the compound annual growth rate smoothes out returns by assuming constant growth. This makes accounting for the investment tidier. It is calculated as: CAGR = (Ending Value / Beginning Value)^((1 / n) - 1) where n is the length of time of the investment in years. It is also called a compound annual growth rate. See also: Average Annual Growth Rate. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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The broker also forecasted that the compound growth rate of CNOOC's oil and gas production during the 2010 to 2013 period would stand at 6 percent while maintaining a 100-percent reserve-replacement ratio. 6 billion USD and the compound growth rate from 2007 to 2012 will reach 35%. To see how many years it will take to double your money at any compound growth rate, just divide 72 by that rate. |
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