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What does Compounded Annual Growth Rate Mean?

April 26, 2017annual compounded growth mean rate

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What does Compounded Annual Growth Rate Mean?

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Compound Annual Growth Rate (CAGR) The year-over-year growth rate of an investment over a specified period of time. The compound annual growth rate is calculated by taking the nth root of the total percentage growth rate, where n is the number of years in the period being considered.