It is said that the Compounded Monthly Growth Rate CMGR provides the average month-to-month growth over a period. The formula is listed below, but I was interested if anyone can explain how to interpret the formula in literal terms so one can conceptualize or "realize" how that formula is actually doing what it's doing The formula is CMGR is = [(Last Month / First Month) ^ 1/(Number of Months Difference)] -1

For example, last month/first month, explain this in laymens terms and each part if you can