Question

how is annual growth rate calculate ​

Answer 1

HER IS UR ANSWER BUDDY

Explanation:

AAGR = (Growth Rate in Period A + Growth Rate in Period B + Growth Rate in Period C + ...Growth Rate in Period X) / Number of Periods

Let's look at an example. Assume that Company XYZ records revenues for the following years:

Using this information and the formula above, we can calculate the AAGR for the 2000-2003 period. First, we calculate that the growth rate from 2000 to 2001 is ($1,200,000 - $1,000,000) / $1,000,000 = 20%.

[Growth rate = (Ending Value - Beginning Value) / Beginning Value]

The growth rate from 2001 to 2002 is ($1,300,000 - $1,200,000)/$1,200,000 = 8.3%.

The growth rate from 2002 to 2003 is ($1,400,000 - $1,300,000)/$1,300,000 = 7.7%.

Next, we add the growth rates together and divide by 3: (20% + 8.3% + 7.7%) / 3 = 12%.

HOPE THIS HELPS U

PLEASE MARK AS BRAINLIEST