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CAGR = ((FV/PV)^(1/n)) - 1
where FV is the future value, PV is the present value, and n is the number of years. (and next time, please ask your question in the body of the message, not just in the subject line) -- David Biddulph "melshult" wrote in message ... |
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On Feb 21, 7:40 am, "David Biddulph" wrote:
CAGR = ((FV/PV)^(1/n)) - 1 where FV is the future value, PV is the present value, and n is the number of years. Another way, which might be easier to remember: =rate(n, 0, -pv, fv) However, sometimes Excel's RATE() function requires a "guess" argument :-(. In either case, note that that depends on the information that you have at hand. For example, that is __not__ how to compute CAGR if all you have is the annual growth rates for N years -- or 12*N months. (and next time, please ask your question in the body of the message, not just in the subject line) I second that. Invariably, the subject deserves some embellishment such as more information, as suggested by my comment above. |
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