1.

CAGR is a measure of annual growth rate. For what does ‘C’ in ‘CAGR’ stands for?1). Compound2). Common3). Country4). Capital

Answer»
  • CAGR stands for Compound Annual Growth RATE.
  • It is defined as the mean annual growth rate of an investment over a specified PERIOD of time longer than one year.
  • $(CAGR = {\left( {\frac{{Ending\;VALUE}}{{Beginning\;Value}}} \right)^{\left( {\frac{1}{{Number\ of\ years}}} \right)}} - 1)$
  • SUPPOSE you invested Rs.10,000 in a BUSINESS. After completion of 3 years value becomes Rs.19,000.

Initial value = Rs.10,000

Final value = Rs.19,000

Time = 3 years

CAGR= .23 or 23%



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