Annualized Return

[Doug]

I am looking for a formual or function to figure an annualized return from an investment. The cost or present value is known, the current value or future value is known, and the time frame is known. I want to find the annualized return from this information.

Thanks for your help.

Doug

 

[Norman Harker]

Hi Doug!

By formula:

=(FV/PV)^(1/NPER)-1

=(150/100)^(1/5)-1
Returns: 8.44717711976985%

Or:
Use RATE function:
=RATE(5,0,-100,150,0,0)
Returns: 8.44717711976986%

Not use of negative for initial investment and positive for final
value.

--
Regards
Norman Harker MVP (Excel)
Sydney, Australia
(e-mail address removed)
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