If CAGR stands for Compound Annual Growth Rate, F.V stands for final value of an investment, P.V stands for present value of an investment and n is the number of years then |
$CAGR =(\frac{F.V}{P.V})^{\frac{1}{n}}-1$ $CAGR =(\frac{P.V}{F.V})^{\frac{1}{n}}-1$ $CAGR =(\frac{F.V}{P.V})^{n}-1$ $CAGR =(\frac{P.V}{F.V})^{n}-1$ |
$CAGR =(\frac{F.V}{P.V})^{\frac{1}{n}}-1$ |
The correct answer is Option (1) → $CAGR =(\frac{F.V}{P.V})^{\frac{1}{n}}-1$ ** The correct CAGR formula is: $\displaystyle CAGR=\left(\frac{F.V}{P.V}\right)^{\frac{1}{n}} - 1$ |