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I see that given an initial investment of $100 on 1/1/2015 with a
CAGR of 9.5% or a CMGR of 0.7591534291% results in a 1/1/2016 balance
of $109.50 in both cases:
However, if we introduce additional $100 contributions at the first
of every month, then the 1/1/2016 results change. The 9.5% CAGR gives
a 1/1/2016 balance of $1,314.00 and the 0.7591534291% CMGR gives a
1/1/2016 balance of $1,260.89. Why are these values different, and
which is correct?
Date Contribution Using 9.5% CAGR Using 0.759... CMGR
1/1/2015 $100 $0 $0.76
2/1/2015 $100 $0 $1.52
3/1/2015 $100 $0 $2.29
4/1/2015 $100 $0 $3.07
5/1/2015 $100 $0 $3.85
6/1/2015 $100 $0 $4.64
7/1/2015 $100 $0 $5.44
8/1/2015 $100 $0 $6.24
9/1/2015 $100 $0 $7.04
10/1/2015 $100 $0 $7.86
11/1/2015 $100 $0 $8.67
12/1/2015 $100 $114 $9.50
1/1/2016 Balance: $1,314 $1,260.89