![]() Warning: watch out for duff formulas on sites that ought to know better. Cut a long story short, that was just wrong and with a bit of thought, I realised the CAGR formula is (FV/PV)^1/NPER – 1: that worked. It was early in the morning and I couldn’t get it to work: it said -96.34% for the example I have just given. That means the CAGR is 67.48%Īs part of my efforts to provide as much help as possible on the CAGR I did a bit of research and found this formula on the MS web site: FV^1/NPER/PV – 1. ![]() ![]() =RRI(10,70,12154) … 10 years with a present value of 70 and a future value at the end of 10 years of 12,154. The syntax of the function is RRI(nper, pv, fv) and an example of how to use RRI() is ![]() There is an Excel function to help with the CAGR that is called RRI(). This is a finance measure that is used to assess how well an investment has done or is doing over a number of periods or years. I talk about the CAGR from time to time in my courses, the Compound Annual Growth Rate. ![]()
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