Is there a function in Excell that can be used to calculate an investment"s
compound growth rate? If so what is it and how do you use it?
For instance if someone invested $10,000 in 1985 and that investment was
worth $18,000 today is there a function in Excell that can be used to
determine that investment's compound growth rate?


0




Reply

Utf

3/15/2010 1:23:01 AM 

Hi,
Try this. E11 has 18,000 and D11 has 10,000. D11 has 2010 and D10 has 1985
=(E11/E10)^(1/(D11D10))1

Regards,
Ashish Mathur
Microsoft Excel MVP
"194471222" <194471222@discussions.microsoft.com> wrote in message
news:86F96FF4F8C340DBA0CC5049A827EB3A@microsoft.com...
> Is there a function in Excell that can be used to calculate an
> investment"s
> compound growth rate? If so what is it and how do you use it?
>
> For instance if someone invested $10,000 in 1985 and that investment was
> worth $18,000 today is there a function in Excell that can be used to
> determine that investment's compound growth rate?


0




Reply

Ashish

3/15/2010 2:27:22 AM


You want the Rate function, as in:
=rate(20101985,0,10000,18000)
Answer: 2% per year
Regards,
Fred
"194471222" <194471222@discussions.microsoft.com> wrote in message
news:86F96FF4F8C340DBA0CC5049A827EB3A@microsoft.com...
> Is there a function in Excell that can be used to calculate an
> investment"s
> compound growth rate? If so what is it and how do you use it?
>
> For instance if someone invested $10,000 in 1985 and that investment was
> worth $18,000 today is there a function in Excell that can be used to
> determine that investment's compound growth rate?


0




Reply

Fred

3/15/2010 4:38:21 AM



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