RE: CAGR

One reason you can earn a high compounding interest is the relationship between time and money. As humans our time is limited. When we agree to lock our principal or agree to let someone else use it involving a risk of loss for a period of time we must be compensated for that. The longer we agree to do it, the more in relative terms we must be paid. Even if there was zero growth in the economy, lenders would still require to be paid interest.