solving CAGR challenge
- From: pete <ptgallant@xxxxxxxxx>
- Date: Fri, 25 Jan 2008 13:38:55 -0800 (PST)
I want to rearrange the following formula to solve for R where
V=(S*((1+R)^(N+1)-1)/(R))-S.
where:
S = 10
V = 39.93375
N = 3
I know the answer is .15.
Essentially, if I compound a starting amount of10 at a rate of 15% for
3 years, the cummulative sum is 39.93375. How do I solve for the
rate if I am given the cummulative sum, the period in years, and the
starting amount?
.
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