Time Value Money Series / Calculate Compound Annualised Growth Rate

Case Study:

Invested $10,000, 30 years ago
Assume value [($10000 x 1563%) + $10000]= 166300

Worksheet

Future Value = Present Value(1+Rate)^Number of Year

FV=PV(1+R)^N

= 166300 = 10000 (1+R)^30
= 10000(1+R)^30 = 166300
= (1+R)^30 = 166300/10000
= (1+R) = (166300/10000)^1/30
= (1+R) = (16.63)^0.0333
= (1+R) = 1.09813
= R = 1.09813-1
= R = 0.09813
= Rate = 9.81% compounding every year

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