Compound Interest Rate or Growth Rate

1

1944-71222

Is there a function in Excell that can be used to calculate an investment"s
compound growth rate? If so what is it and how do you use it?

For instance if someone invested $10,000 in 1985 and that investment was
worth $18,000 today is there a function in Excell that can be used to
determine that investment's compound growth rate?
 
A

Ashish Mathur

Hi,

Try this. E11 has 18,000 and D11 has 10,000. D11 has 2010 and D10 has 1985

=(E11/E10)^(1/(D11-D10))-1
 
F

Fred Smith

You want the Rate function, as in:
=rate(2010-1985,0,10000,-18000)

Answer: 2% per year

Regards,
Fred
 

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