Statistics & Applications

Financial Math

Medium

applied

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

$CAGR = \left(\frac{F.V}{P.V}\right)^{\frac1n} - 1$

$CAGR = \left(\frac{P.V}{F.V}\right)^{\frac1n} - 1$

$CAGR = \left(\frac{F.V}{P.V}\right)^n - 1$

$CAGR = \left(\frac{P.V}{F.V}\right)^n - 1$

✅ Correct Option: 1

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