Compounded annual growth in Excel?

CFA General
#1

Looking for feedback on the easiest way to accomplish this in excel. (Calculating compounded annually growth rate). Also if you see something faulty in logic, please let me know. Thank you for your help and time.

Year 1 2 3 4 5 6 7 8 9 10

Cash 164 158 166 154 167 184 177 187 186 194

Ann % -3.66 5.06 -7.23 8.44 10.18 -3.80 5.65 -0.53 4.30

Compounded Annually 2.05%

#2

Try http://office.microsoft.com/en-us/excel-help/calculate-a-compound-annual-growth-rate-cagr-HP001122506.aspx

#3

Thank you for the link, but this function will not work because it requires at least one of the values to be negative.

#4

CAGR = ((FV/PV)^(1/(t-0)) - 1

or using the “rate” function:

=rate(n, 0, -pv, fv)

#5

First formula worked like a charm. Thank you for your assistance.

#6

you realize there are only 9 intervening periods.

so it should be (194/164)^(1/9) - 1 = 1.88%

#7

+1