Simple Post: Understanding CAGR

My insurance policy just matured today, and I thought it would make a nice example to understand what CAGR is: compounded annual growth rate. 

All investment products should be scrutinised by its returns on a CAGR basis, especially when it spanned across multiple years like this. It offers a perspective on whether the investment had been a great one, or could there be better alternatives around?

Total premiums paid over 18 years: $18441

Total returns: (survival benefits of $500 every year) $8000 + (eventual returns) $13329.01= 21329.01

The CAGR formula is a simple one. (eventual sum / starting sum) to the exponential of 1/number of years.

(21329.01/ 18441) ^ (1/17)

=1.00859

which is actually 0.86% per annum

What a rubbish return really. So it was great I had encashed all the survival benefits and reinvest it into stocks intelligently.

I could have bought a bond ETF and do better.