Compound Interest

[Paul]

Hi,
I want to calculate the growth rate between two dates.

The data in question is:
Start date 31/01/1995 Value 146.0
End Date 31/12/2004 Value 189.9

I think the annual growth rate is about 2.6% pa, but I don't know the
formula to calculate it.

Any help appreciated.

Thanks for looking.

Paul

 

[Ron Rosenfeld]

Hi,
I want to calculate the growth rate between two dates.

The data in question is:
Start date 31/01/1995 Value 146.0
End Date 31/12/2004 Value 189.9

I think the annual growth rate is about 2.6% pa, but I don't know the
formula to calculate it.

Any help appreciated.

Thanks for looking.

Paul

Have a look at the XIRR worksheet function.

In your example:

=xirr(Values,Dates) --> 2.6846%

One caveat is that in your "values" range, one of the values must be negative.


=xirr({146;-189.9},{"1/31/1995";"12/31/2004"})

(Note that I have altered the date string to conform with my US regional
settings).

===================
If the XIRR function is not available, and returns the #NAME? error, install
and load the Analysis ToolPak add-in.

On the Tools menu, click Add-Ins.
In the Add-Ins available list, select the Analysis ToolPak box, and then click
OK.
If necessary, follow the instructions in the setup program.
===================


--ron

 

[Paul]

Thanks Ron, that's what I have been looking for!
Paul

 

[Ron Rosenfeld]

Thanks Ron, that's what I have been looking for!
Paul

You're welcome. Glad I could help.
--ron