Calculating market growth rates
"Sean Haffey" wrote:
- $10m was the initial market size
- $100m was the final market size
- it took six quarters to grow from $10m to $100m
Then what was the growth rate?
=RATE(6,, -10, 100)
That is the average __quarterly__ rate.
If you want the effective __annual__ rate, ostensibly,
it might be:
=FV(RATE(6,, -10, 100), 4,, -1) - 1
which is the same as (1 + r)^4 - 1, where "r" is the
quarterly rate, however you want to compute it.
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