calculate compound growth

  • Thread starter Thread starter Guest
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G

Guest

Hi al

I would like to find out the growth on a series of sales figures but compound. For instance, say that for years 1999,2000,2001 and 2002 i have sales to the value of 365,405,658,920 respectively

I know how to calculate growth of one year over the previous but what is the compound average growth when including all information
It is not good doing 920/365-1 and then divide by 4 as its not fully accurate. Can anyone help with this

Thanks
 
Your general formula is

FV = PV * (1 + i)^nper

In this case

920 = 365 * (1 + i)^4

rearranging:

i = (920/365)^(1/4) - 1 ==> 0.260009271 or 26%
 
Pedro

I had to look up some an old book to remind my how its
done.

The Start value is in B1 the Final Value is in B2 and the
number of period is 3

In B3 Use the Formula =EXP(LN(B2/B1)/3)-1 which results
in .36 (roughly)

Regards
Peter

-----Original Message-----
Hi all

I would like to find out the growth on a series of sales
Click to expand...
figures but compound. For instance, say that for years
1999,2000,2001 and 2002 i have sales to the value of
365,405,658,920 respectively.
I know how to calculate growth of one year over the
Click to expand...
previous but what is the compound average growth when
including all information?
It is not good doing 920/365-1 and then divide by 4 as
Click to expand...
its not fully accurate. Can anyone help with this?
 
This would be when compounding occurs every instant not annually - OK for
Physics not for Finance
Bernard
 
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