How do you calculate CAGR (compound annual growth rate) in Microsoft Excel?
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video professor\neven though i can do it, it is too difficult to explain with showing you\ni never used the vidiot myself
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some formulas that can help :\nhttp://www.eskridgeinc.com/support/formulas.html
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one formula you can use is\n\nF = P(1 + i)^n\nwhere,\n\nF = future worth of the money\nP = present worth of the money\ni = interest rate\nn = number of years\n\nsince the future worth of the money will be twice of the present worth, then we can say that,\n\nF = 2P\n\nusing this in the formula you'll come up with,\n\n-> 2P = P(1 + i)^n  \n(divide the whole equation by P)\n-> 2 = (1 + i)^n \n(n is 20 years)\n-> 2 = (1 + i)^20\n(raising the whole equation by 1/20)\n-> 2^(1/20) = 1 + i\n-> 1.035264 = 1 + i\n-> i = 0.035264\n-> i = 3.5264%
817907
The formula for population growth is P(n) = P(0)*(1+r)^n, where r is the fractional growth per year, n=no of years, P(0) is the starting value.  To solve for r, take log of both sides to get\n\nlog[P(n)] = log[P(0)] +n*log(1+r)\n\nThen log(1+r) = {log[P(n)] - log[P(0)]}/n = log[P(n)/P(0)]/n\n\nRaise both sides to the power of 10\n\n1+r = 10^{log[P(n)/P(0)]/n}\n\nr = 10^{log[P(n)/P(0)]/n} - 1\n\nSo enter P(n), divide by P(0), take log of the quotient.  Divide this by n and take 10 to the power of this result, then subtract 1.
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Here you go:\n\nhttp://www.usd.edu/trio/tut/excel/index.html
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use $100\nfv=pv * (1+ I/compounding)^n*compounding \nn = years I = interest\nx = 100 * (1+.0425)^3*1 simple\nx = 100 * (1+.04/2)^3*2 compounded semiannually\nsimple = 113.30\nsemi annual = 112.62\nso simple is better over 3 years
940383
Ha! Trial and error.\n\nUse a spreadsheet.
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Actually the answer provided by bluhawaii is incorrect.  It is only a "simple interest formula".  It does not take into account the compounding effect that occurs from the 5% raise being tacked on every year the 17 years.  Here are the correct numbers!\nYearEnd - Amount\n1- $52,500 \n2- $55,125 \n3- $57,881.25 \n4- $60,775 \n5- $63,814.08 \n6- $67,005 \n7- $70,355.02 \n8-$73,873 \n9-$77,566.41 \n10-$81,445 \n11-$85,516.97 \n12-$89,793 \n13-$94,282.46 \n14-$98,997 \n15-$103,946.41 \n16-$109,144 \n17-$114,600.92
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The prior answer is exactly right, but as far as a general rule goes:\n\nDivide the current value by the present value - here, $200,000 divided by $100,000 = 2\n\nIf you want to figure out the average increase over x periods, simply take the xth root of the quotient you calculated above.\n\nHere, again, for example, you're looking for the 5th root of 2, because you're trying to figure out the average increase over 5 years (therefore, the 5th root) of 2 (the quotient)\n\nSo - using that formula here:\n\nThe 5th root of 2 (the same as 2 raised to the 0.2 power) equals 1.14869.\n\nIgnore the leading 1 - you're looking for the numbers after the decimal place. Therefore, the average rate of growth is 14.869 percent per year over 5 years.\n\nThis approach should work for any similar problem.\n\nGood luck!
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There is no accurate way to do this because too many variables are involved. You can do like I do though and run a series of tests and then average them.\n\nhttp://www.toast.net/
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You need to use the formula for the future value of an annuity to solve this.  This formula is:\n\nF = (P/R)*[(1+R)^K -1]\n\nwhere\n\nK is the number of investment periods\nR is the periodic interest rate\nP is the periodic investment amount\nF is the value after K investment periods\n\nIn your case, the investment period is quarterly, so there will be 20*4 = 80 investment periods in 20 years.\n\nThe periodic investment rate is the annual investment rate divided by 4:  0.076/4 = 0.019\n\nF is the amount desired after 20 years = $200,000.\n\nWe need to solve for P, the quarterly investment amount.\n\nRearranging the above equation to solve for P, we get:\n\nP = F*R/[(1+R)^K - 1]\n\nP = 200,000 * 0.019/[1.019^80 -1]\n\nP = 1,083.39598.  Call it $1,083.40 <g>.\n\nYou can use the calculators at the second and third sources below to do these calculations on-line.  The first source gives the derivation of the actual formula for the future value of an annuity (and related formulas).
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A = A_(0)*exp(k*t) \n\nA represents the amount at a given time t.\n\nAo represents the initial amount of the growing entity.  Note that this is the amount when t = 0.\n\n\nk is a constant that represents the growth rate.  It is POSITIVE when talking in terms of exponential GROWTH.\n\n\nt is the amount of time that has past.  If the information for time is given in dates, you need to convert it to how much time has past since the initial time.  For example, if the model is set up at an initial year of 2000 and you need to find out what the value is in the year 2010, t would be 2010 - 2000 = 10 years.\n\nYou can use this formula to find any of its variables, depending on the information given and what is being asked in a problem.  For example, you may be given the values for Ao and t and you need to find the amount A after the given time.  Or, you may be given the final amount A and the initial amount Ao and you need to find the time t.\n\nSome examples of exponential growth are population growth and financial growth.  The information found, can help predict what a population for a city or colony would be in the future or what the value of your house is in ten years.  Or you can use it to find out how long it would take to get to a certain population or value on your house.
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http://www.trueforex.com/calculating_pl.asp
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The compound interest formula is an exponential function:\n\nA=P(1+(r/n))^(n*t) where\nA=final amount\nP=principal or beginning amount\nr=interest rate (as a decimal)\nn=number of compounding per year\nt=time in years\n\nThe other exponential formula for compounding interest is used for continuously compounding interest or when (n*t) is equal to infinity. It is also the equation used when charting the growth or decay of bacteria.\n\nA=P*e^(r*t).\n\nPlease check the second source for info on how this equation relates to bacteria growth/decay.
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apolitical and hayharbor avoided the compounding issue, and ws's formula is for an annuity where you ADD another 350 each year.  subwoofer has it right but gives you an old fashioned lesson in logarithms.  but it takes only 2 steps of algebra to get a calculator-ready equation.\n\n350*r^7=800\nr^7=800/350\nr=(800/350)^(1/7)\n\nand even a $12 calculator, say a TI-30, will give you\n\nr=1.125353197; which makes the annual percent of increase 12.54%
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I've uploaded a simple spreadsheet to the link below.  Anything else and you should probably find someone in the office who knows Excel.
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Collect the sum of the overhead for your business.\nCount how many instances of overhead.\nThe average will be the sum / count.\n\nMake a cell with the formula:\n'=SUM(start_col_row : end_col_row)'\nEg, B1 '=SUM(A1:A14)'\n\nMake another cell with this formula:\n=COUNT(start_col_row : end_col_row) '\nEg, B2 '=COUNT(A1:A14)'\n\nMake yet another cell with this formula:\n=(cell_with_sum / cell_with_count) * 100'\nEg, B3 '=(B1/B2) * 100'\n\nThis gives the average overhead in percentage, for your business.\n\nHow you do the comparison of your average vs. national average is entirely up to you.  You could just look, you could take yours away from the national, etc.