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Compound Rate of Return
I want to figure out what my compound rate of increase is for two values
between a span of six years. In 1999, our health rates for an employee were $200.18 per month. In 2005, it is $248.92. While the % increase is 24% overall, what function do I use to calculate the compound rate of increase? Thanks! Steve C |
#2
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On Mon, 20 Jun 2005 11:55:04 -0700, "Steve C"
wrote: I want to figure out what my compound rate of increase is for two values between a span of six years. In 1999, our health rates for an employee were $200.18 per month. In 2005, it is $248.92. While the % increase is 24% overall, what function do I use to calculate the compound rate of increase? Thanks! Steve C You can use the RATE worksheet function. You need to make either the PV or FV value negative. =RATE(2005-1999,,-200.18,248.92) -- 3.70% A mathematical formula is: =(248.92/200.18)^(1/6)-1 --ron |
#3
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=(248.92/200.18)^(1/6)-1
=3.70% Or =POWER(248.92/200.18,1/6)-1 "Steve C" wrote in message ... I want to figure out what my compound rate of increase is for two values between a span of six years. In 1999, our health rates for an employee were $200.18 per month. In 2005, it is $248.92. While the % increase is 24% overall, what function do I use to calculate the compound rate of increase? Thanks! Steve C |
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