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In the world of finance and investing, understanding the potential growth rate of an investment is crucial for making informed decisions.

This is where the Compound Annual Growth Rate (CAGR) comes into play. CAGR is a powerful tool that calculates the annual rate of return for an investment over a specific period, considering the compounding effect.

CAGR is a very useful method to calculate the growth rate of an investment. It can be used to evaluate past returns or estimate the future returns of your investments.