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compound annual growth
Message posted by darshana on November 2, 1999 at 12:00 AM (ET)
How do i calculate this. I am in the midst of analysing some annual growth figures.
I have the annual growth amount as well as the fugure for each year.
Would really appreciate an answer.
Thanks.
READERS RESPOND:
(In chronological order. Most recent at the bottom.)
Re: compound annual growth
Message posted by JG on November 3, 1999 at 12:00 AM (ET)
(1+x) to the n th power is approximately equal to 1 + n*x when x is small. I find this formula very useful when doing compound growth computations such as compound interest computations.
Re: compound annual growth
Message posted by JG on November 3, 1999 at 12:00 AM (ET)
I you already have data and are trying to figure out growth rates try plotting the data on logarithmic paper or fit the curve log(y) = log(a) + log(x) , etc.
Re: compound annual growth
Message posted by Jack Tomsky on November 3, 1999 at 12:00 AM (ET)
If Xo is the amount at the beginning and Xt is the amount after t years, then the annual compound growth rate isr = (Xt/Xo)^(1/t) - 1.
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