Worksheet function--Compounded Growth Rate?

A

Arsenio Oloroso

Does anyone know if there is an Excel worksheet function that calculates
compounded growth rate?

As in:

compounded growt rate = {[(y/x)^(1/n)]-1}*100
 
N

Norman Harker

Hi Arsenio!

You can use the RATE function for this:

=RATE(nper,pmt,pv,fv,type,guess)

With your notation:

=RATE(n,0,-x,y,0,0)
Note that this returns the rate per period of time "counted" by the
nper argument. Also note the use of the sign of money flows convention
whereby the initial investment (the pv) is negative and the end value
is positive.

You'll find that the formula basis for the RATE function can be found
under the Help for PV.
 
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