Prev: sumif
Next: prevent div/0 error
From: 1944-71222 on 14 Mar 2010 21:23
Is there a function in Excell that can be used to calculate an investment"s
compound growth rate? If so what is it and how do you use it?

For instance if someone invested $10,000 in 1985 and that investment was
worth $18,000 today is there a function in Excell that can be used to
determine that investment's compound growth rate?
From: Ashish Mathur on 14 Mar 2010 22:27
Hi,

Try this. E11 has 18,000 and D11 has 10,000. D11 has 2010 and D10 has 1985

=(E11/E10)^(1/(D11-D10))-1

--
Regards,

Ashish Mathur
Microsoft Excel MVP

"1944-71222" <1944-71222(a)discussions.microsoft.com> wrote in message
news:86F96FF4-F8C3-40DB-A0CC-5049A827EB3A(a)microsoft.com...
> Is there a function in Excell that can be used to calculate an
> investment"s
> compound growth rate? If so what is it and how do you use it?
>
> For instance if someone invested $10,000 in 1985 and that investment was
> worth $18,000 today is there a function in Excell that can be used to
> determine that investment's compound growth rate?

From: Fred Smith on 15 Mar 2010 00:38
You want the Rate function, as in:
=rate(2010-1985,0,10000,-18000)

Answer: 2% per year

Regards,
Fred

"1944-71222" <1944-71222(a)discussions.microsoft.com> wrote in message
news:86F96FF4-F8C3-40DB-A0CC-5049A827EB3A(a)microsoft.com...
> Is there a function in Excell that can be used to calculate an
> investment"s
> compound growth rate? If so what is it and how do you use it?
>
> For instance if someone invested $10,000 in 1985 and that investment was
> worth $18,000 today is there a function in Excell that can be used to
> determine that investment's compound growth rate?

 | 
Pages: 1
Prev: sumif
Next: prevent div/0 error