Microsoft Excel does not include an average growth rate function. However, you can use the following formula for this calculation
- Open a new workbook in Excel.
- Type the following column titles in the worksheet:
A1: FV B1: PV C1: N D1: M E1: AGR
- Type the following formula in cell E2:=((A2/B2)^(1/C2))^D2-1
- For the following examples, drag cell E2 to fill the "AGR" column to at least E3.
Example 1Assume an investment where FV=$120,000, PV=$10,000, n=120 periods, and m=12 periods/year. Type these values in the worksheet as follows:
The formula in cell E2 calculates = .282089 (an AGR of 28.21% per year).
A2: 120000 B2: 10000 C2: 120 D2: 12
Example 2Assume an investment where FV=$120,000, PV=$10,000, n=8 periods, and m=1 period/year. Type these values in the worksheet as follows:
The formula in cell E3 calculates = .364262 (an AGR of 36.43% per year).
A3: 120000 B3: 10000 C3: 8 D3: 1
ID d'article : 123198 - Dernière mise à jour : 18 janv. 2007 - Révision : 1