What is CAGR or Compound Annual Growth Rate? And how is it calculated? Sumaira Abidi explains one of the important fundamentals of investing on 'Market Simplified' #CNBCTV18ClutterBreakers #MarketSimplified #CNBCTV18Market #CAGR #growth | CNBC-TV18

What is CAGR - Compound Annual Growth Rate? How is it calculated?

CAGR (Compound Annual Growth Rate) is calculated using the following formula: CAGR = (Final Value / Initial Value) ^ (1 / Number of Years) - 1 In the given example: Initial Investment Amount (P) = Rs. 133 Final Value (F) = Rs. 7,095 Number of Years (N) = 10 Number of periods= 9 To calculate the CAGR using Excel, you can use the formula: Where: Formula =RATE(nper, pmt, pv, [-fv]) Nper: The total number of payment periods (In the above example 9) Pmt: The payment made in each period. It should be