Average Annual growth rate

The Average Annual growth rate , or AAGR, makes it possible to calculate an average variation over one duration of N periods. Other denominations exist, such TAMA (Average Annual Rate of Increase), or TAAM (Average Annual Rate of increase).

Formulate

$TCAM\; =\; \backslash \; left\; ((\backslash \; sqrt\; \{\backslash \; cfrac\; \{\backslash \; text\; \{value\; D\; arrived\; -\; value\; starting\}\}\; \{\backslash \; text\; \{value\; starting\}\}\; +1\}\; \backslash \; right)\; -\; 1)\; \backslash \; times\; 100$

$n\; \backslash ,$ is the number of periods of the studied duration (years, month, weeks, etc…).

Caution: The result obtained is expressed as a percentage. To re-use it in other calculations take care to hold account of it

Interest

The interest of the AAGR is to provide an indication on average growth rate over a given period. And the comparison of two AAGR makes it possible, consequently, to compare the fluctuations of the phenomenon observed relative with these two periods. For example, in economy, the interest of the AAGR is to compare the growth during the Glorious Thirty (1945-1975) with the growth of the following period (1975 with today).

The AAGR moreover is employed in Démographie to describe the rate of increase in the population between two censuses (relative demographic balance).

Limits

The AAGR gives an average of the annual evolutions but does not hold in account of the precision of the internal variations of the studied period, indeed it takes into account only the initial and final values in its calculation. (It does not remain about it less than the AAGR is often close to the actual values).

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