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Term: Accounting -> Compound Annual Growth Rate
Term:

Compound Annual Growth Rate

Definition:

The year on year growth rate required to show the change in value (of an investment) from its initial value to its final value. If a $1 investment was worth $1.52 over three years, the CAGR would be 15% [(1 x 1.15) x 1.15 x 1.15]

Related terms:

Accrual method of accounting

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