Clarification Request: Key Differences Between CAGR and Exponential Growth Rates

[Kanika Mehta]

Respected Experts

I trust this email finds you well. I am reaching out to tap into your expertise and seek your guidance in clarifying a matter related to the calculation of Compound Annual Growth Rate (CAGR) and its association with exponential growth rates. 

In the course of our research, we have predominantly used exponential methods to determine the CAGR. However, CAGR can also be calculated by considering only the initial and final values of an investment or variable. This revelation has prompted some questions regarding the differences between these two methods and which one might be considered more appropriate or superior. Your insights are crucial to help me navigate this issue effectively.

Regards and Respect

Kanika Mehta

Ph. D. (Agricultural Economics)