Home > Statistics Every Writer Should Know > The Stats Board > Discusssion
compound annual growth rate
Message posted by Joseph Hogue on February 2, 2000 at 12:00 AM (ET)
Could someone tell me the formula for the compound annual growth rate? Please use symbol such as + for plus, - for minus, / for divided by, and * for multiply. I have no idea what ^ means. Thank you so much.
READERS RESPOND:
(In chronological order. Most recent at the bottom.)
Re: compound annual growth rate
Message posted by Jack Tomsky on February 3, 2000 at 12:00 AM (ET)
If X is the starting amount and Y is the amount after t years, then the compound annual growth rate is given by the t-th root of the ratio of Y to X, minus one.
Re: compound annual growth rate
Message posted by P. Sherwood on March 22, 2000 at 12:00 AM (ET)
See http://www.fool.com/DDow/1999/DDow990309.htm, from the Motley Fool, for a very clear and comprehensible explanation of how to calculate CAGR.
Re: compound annual growth rate
Message posted by David on May 11, 2000 at 12:00 AM (ET)
How does Excel calculate an unknown amount to a specific power. I.e. what is the formula for N^7=2.336198, solving for "N"?Thanks in advance.
Re: compound annual growth rate
Message posted by Kumud Singh-Altmayer on May 13, 2000 at 12:00 AM (ET)
Need help for doing Energy analysis, forecast and especially on CAGR.Thank you!
Ms. KSA
Re: compound annual growth rate
Message posted by Y on May 24, 2000 at 12:00 AM (ET)
Your question:
I.e. what is the formula for N^7=2.336198, solving for "N"?Answer:
N^7=2.336198
N = 2.336198^(1/7)
Therefore the formula in Excel is
=POWER(2.336198,1/7)
The POWER function is found in
Insert/Function/Math & Trig
Or there should be a shortcut button "fx"
Your $5 contribution helps cover part the $500 annual cost of keeping this site online.
