Period to Period percentage change?
What is the formula for period to period percentage change at annual rates? -- cs120 ------------------------------------------------------------------------ cs120's Profile: http://www.excelforum.com/member.php...o&userid=27348 View this thread: http://www.excelforum.com/showthread...hreadid=468566 |
It depends upon the period. Lets say on Jan 1, starting with 10,000, we
desired an annual rate of 12%. One year later, (Jan 1 again) we would have 11,200. Lets also say the period is one month. In this case the formula is (1+1/12)^(1/12)-1. This yields 0.94888%, which is just under the 1% we would get without compounding. Testing this in Excel: 1. Put months in Column A 2. Put 10,000 in B1 3. Put =B1*(1+$C$1) in B2 and copy down 4. Put .94888 in C1 We find: jan 10,000.00 0.94888% feb 10,094.89 mar 10,190.68 apr 10,287.37 may 10,384.99 jun 10,483.53 july 10,583.01 aug 10,683.43 sep 10,784.80 oct 10,887.13 nov 10,990.44 dec 11,094.72 jan 11,200.00 Just what we wanted. -- Gary''s Student "cs120" wrote: What is the formula for period to period percentage change at annual rates? -- cs120 ------------------------------------------------------------------------ cs120's Profile: http://www.excelforum.com/member.php...o&userid=27348 View this thread: http://www.excelforum.com/showthread...hreadid=468566 |
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