I have been trying to rework a common CAGR formula to be able to calculate the initial investment value if all I have if the annualized rate and the average value over the term.
So I know the standard formula is:
The formula is: R = (F/I)^(1/Y)-1
R = annualized rate
I = initial investment value
F = final investment value
Y = no of years
But what I have is the average value instead of the initial investment value or the final investment value.
For example, if I know the average over 5 years is $1000, and the annualized rate of return is 4%, what is the formula to compute the initial investment value.
I know by trial and error the 5 values should be:
But I can't find the formula for this.