Exercises / Finance and business maths · 3 of 14
Compound annual growth rate
CAGR is the steady yearly growth that turns a start value into an end value: (end ÷ start)^(1 ÷ years) − 1. It is the standard way to compare growth over different periods.
Your taskIn E2, work out the CAGR from the start value (B2) to the end value (C2) over the number of years in D2. It will be copied down to E6.
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| Row | A | B | C | D | E |
|---|---|---|---|---|---|
| 1 | Company | Start | End | Years | CAGR |
| 2 | Alpha | $1,200,000.00 | $2,150,000.00 | 5 | |
| 3 | Beta | $480,000.00 | $610,000.00 | 3 | |
| 4 | Gamma | $3,500,000.00 | $3,900,000.00 | 2 | |
| 5 | Delta | $90,000.00 | $410,000.00 | 6 | |
| 6 | Epsilon | $2,200,000.00 | $1,850,000.00 | 4 |