Posts tagged ‘CAGR’

The Time Value of Money: The Math Behind Interest Rates

Posted May 29, 2015 under General Information, Investing | 6 Comments

We’ve all heard the phrase “Time is money.” But what do these two things actually have to do with one another? German Nande explains the math behind interest rates, revealing the equation that will allow you to calculate the future value of your money. Applying the formula to investments Most investments have historical performance data, […]

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Compounded Annual Growth Rate Calculation and Why It Matters To Investors

Posted November 13, 2013 under Investing | 16 Comments

By definition, Compounded Annual Growth Rate (CAGR) is a geometric mean that represents the constant rate of return over time, of a specific unit in business or investment. It’s not a term officially used in Accounting, but it is nevertheless useful when it comes to analyzing performance against benchmarks, and comparing growth rates of similar […]

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