I am newbie, so forgive me if my question seems trivial. I have a numerical where a bank scheme triples a person's investment in 5 years but it doesn't talk about the compounding frequency. Assuming it to be compounding yearly I get a CAGR of 24.57%.
I was wondering does the compounding period matter? Will I end up getting the effective yield per year as 24.57 % even for semi annual, quarterly or monthly compounding periods? I know there is a difference between nominal rate and effective rate. Is CAGR the effective rate which would stay the same irrespective of compounding period which would only change the nominal rate??