APPENDIX C
CAGR SHORTCUT
The following table provides a comparison of the exact CAGR as calculated by the detailed formula and the rough CAGR as estimated the shortcut Rule of 75%.
| (A) Number of Years to Double (FV/PV) | (B) CAGR Calculated by Formula | (C) = (A) × 0:75 CAGR Calculated by Rule of 75% |
| 2 | 41% | 38% |
| 3 | 26% | 25% |
| 4 | 19% | 19% |
| 5 | 15% | 15% |
| 6 | 12% | 13% |
| 7 | 10% | 11% |
| 8 | 9% | 9% |
| 9 | 8% | 8% |
| 10 | 7% | 8% |
| 11 | 7% | 7% |
| 12 | 6% | 6% |
| 13 | 5% | 6% |
| 14 | 5% | 5% |
| 15 | 5% | 5% |
| 16 | 4% | 5% |
| 17 | 4% | 4% |
| 18 | 4% | 4% |
| 19 | 4% | 4% |
| 20 | 4% | 4% |
| 21 | 3% | 4% |
| 22 | 3% | 3% |
| 23 | 3% | 3% |
| 24 | 3% | 3% |
| 25 | 3% | 3% |