![]() ![]() In the meantime, the future value of his initial investment of $ 5,000 would be $5723.50 after the end of one year only. ![]() So, in this entire period, the bank has actually attributed a compound interest rate of 14.47% to his initial investment. After the end of 3 years, the bank would return him a total of $7500. ![]() “The compound annual growth rate (CAGR) is the rate of return (RoR) that would be required for an investment to grow from its beginning balance to its ending balance, assuming the profits were reinvested at the end of each period of the investment’s life span.”įor example, someone has deposited an amount of $5000 in a bank for 3 years. The term CAGR is too common while dealing with the calculations of compound interest in finance and business. Related Articles What is CAGR (Compound Annual Growth Rate)?ĬAGR means Compound Annual Growth Rate. ![]()
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