Compound Interest Rate or Growth Rate

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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/(D11-D10))-1

-- 
Regards,

Ashish Mathur
Microsoft Excel MVP

"1944-71222" <1944-71222@discussions.microsoft.com> wrote in message 
news:86F96FF4-F8C3-40DB-A0CC-5049A827EB3A@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(2010-1985,0,10000,-18000)

Answer: 2% per year

Regards,
Fred

"1944-71222" <1944-71222@discussions.microsoft.com> wrote in message 
news:86F96FF4-F8C3-40DB-A0CC-5049A827EB3A@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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