CAGR Calculation - Example 1

Compound Annual Growth Rate
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Anita Patil
Teacher, India

CAGR Calculation - Example 1

How to calculate CAGR for these export figures?
Export figures are for:
2005: Rs. 1205 cr.
2006: Rs. 995 cr.
2007: Rs. 1025 cr.
2008: Rs. 1150 cr.

  Ashish Kumar
Student (MBA)
 

Solution

Hi, going by the formula, ((1150/1205)^(1/3))-1, it would give me the value -1.55%, that means if the initial export figure to be reduced by 1.55% annually, after three years the export figure will be 1150 crore from 1205 crore.

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