Barkskin on Nostr: Cagr.. Can someone explain me this calculation? I asked ai, but that gave something ...

Cagr.. Can someone explain me this calculation?
I asked ai, but that gave something else.

AI duckdcukgo:

CAGR stands for Compound Annual Growth Rate. It represents the mean annual growth rate of an investment over a specified time period, assuming the investment grows at a steady rate. It is calculated using the formula:

CAGR=
BeginningValue
EndingValue
​

n
1
​

−1

Where:

Ending Value is the final value of the investment.
Beginning Value is the initial value of the investment.
n is the number of years.
Calculation for 20 Years
If you want to calculate the future value of your 0.1 BTC investment over 20 years with a CAGR of 55%, you can use the future value formula:

FV=PV×(1+r)
n


Where:

PV=10,000USD (0.1 BTC at $100,000)
r=0.55 (CAGR of 55%)
n=20
Now, plug in the values:

FV=10,000×(1+0.55)
20


Calculating (1+0.55)
20
:

(1.55)
20
≈108.47(approximately)

Now, calculate the future value:

FV≈10,000×108.47≈1,084,700USD

So, if Bitcoin continues to grow at a CAGR of 55% for the next 20 years, your 0.1 BTC investment could potentially be worth approximately $1,084,700.