Compound Interest Rate or Growth Rate

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

Answer: 2% per year

Regards,
Fred
 

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