Compounded Rate
 

I need to have a formula which solves what the constant rate of increase per
year was to obtain a figure.

I know the % increase from base yr to end yr was 28.08%. I now need to know
what % (constant) was needed to increase each year to get to the end figure.

Make sense?

Compounded Rate
 

=((final_value / initial_value) ^ (1/number_of_years)) - 1
Ex ((12808/10000) ^ (1/3) - 1 = 8.6%

"GatorGirl" wrote:

I need to have a formula which solves what the constant rate of increase per
year was to obtain a figure.

I know the % increase from base yr to end yr was 28.08%. I now need to know
what % (constant) was needed to increase each year to get to the end figure.

Make sense?

Compounded Rate
 

=(1+28.08%)^(1/n)
where n is the number of years to give 28.08%
--
David Biddulph

"GatorGirl" wrote in message
...
I need to have a formula which solves what the constant rate of increase
per
year was to obtain a figure.

I know the % increase from base yr to end yr was 28.08%. I now need to
know
what % (constant) was needed to increase each year to get to the end
figure.

Make sense?

Compounded Rate
 

-1, of course:
=(1+28.08%)^(1/n) -1
--
David Biddulph

"David Biddulph" <groups [at] biddulph.org.uk wrote in message
...
=(1+28.08%)^(1/n)
where n is the number of years to give 28.08%


"GatorGirl" wrote in message
...
I need to have a formula which solves what the constant rate of increase
per
year was to obtain a figure.

I know the % increase from base yr to end yr was 28.08%. I now need to
know
what % (constant) was needed to increase each year to get to the end
figure.

Make sense?

Compounded Rate
 

On Mar 7, 12:54 pm, GatorGirl
wrote:
I know the % increase from base yr to end yr was 28.08%. I now need to know
what % (constant) was needed to increase each year to get to the end figure.

=rate(n, 0, -1, 1+28.08%)

where n is the number of years.

Becoming familiar with the basic financial functions can help you when
you need to solve more complex problems (e.g. you made an annual
contribution).

Compounded Rate
 

PS....

On Mar 7, 3:02 pm, "joeu2004" wrote:
=rate(n, 0, -1, 1+28.08%)

I should have noted that Excel's RATE() implementation is unreliable
insofar as it sometimes fails unless you can provide a good "guess"
argument. So in this simple case, if you are comfortable with the
exponential formulation, it is certainly more efficient and arguably
more reliable. I offered the RATE() solution merely as an alternative
for your consideration. Some people prefer to use the financial
functions because of their similarity to functions on business
calculators.