1.01^5 * 1.37 = 1.43988 1.43988^(1/6) = 1.06264 So, really 6.26% CAGR. Not a huge difference here. But it is lower. The difference really shows up when you s

1.01^5 * 1.37 = 1.43988 1.43988^(1/6) = 1.06264 So, really 6.26% CAGR. Not a huge difference here. But it is lower. The difference really shows up when you start seeing losses. The extreme case of one year with 100% loss demonstrates things.