If you have all positive returns, in the formula, let`s suppose:

Year 1 - 34,9% year 2 - 6,13% year 3 - 2,69% year 4 - 11,66% year 5 - 21,77%

in the book the answer is:

(1,349)*(1,.0613)*(1,0269)*(1,1166)*(1,2177)^1/5 - 1

(1,349)*(1,.0613)*(1,0269)*(1,1166)*(1,2177)^0,2 - 1

My question is why instead of putting like 0,349 you need to add a 1 in all of them?

Can someone explain it please?