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The current value of a company is 26 million. If the value of the company six...

The current value of a company is 26 million. If the value of the company six years ago was 10 million, what is the company’s mean annual growth rate over the past six years (to 1 decimal)?

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Answer #1

Given:

The current value of a company is 26 million. If the value of the company six years ago was 10 million.

End value = 26 million

Start value = 10 million

n = 6 years

The compound annual growth rate (CAGR) is the mean annual growth rate of an investment over a specified period of time .

So mean or average annual growth rate is

Therefore the company's mean annual growth rate over the past six years is 17.3%

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