Compound Growth Rate

The compound growth rate is the rate at which a property or value grows over a certain amount of time, taking into account the effect of compounding. It shows the average growth rate of an investment over a year, taking into account any gains or returns that are put back into the investment. To figure out the compound growth rate, you need to know how much a purchase was worth at the beginning and how much it was worth at the end of a certain amount of time. This is how to figure out the compound growth rate: Compound Growth Rate = (End Value/Initial Value)(1/the number of Periods)-1