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how do you calculate compound rate of return. Range of interest rates above and below the rate set above that you desire to see results for. Calculate Compound Annual Growth Rate in Excel.
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Monthly compounding is calculated by principal amount multiplied by one plus rate of interest divided by a number of periods whole raise to the power of the number of periods and that whole is subtracted from the principal amount which gives the interest amount. This is also called the Compound Average Rate of Return CAGR. Divide the value of an investment at the end of the period by its value at the beginning of that period.
Divide the value of an investment at the end of the period by its value at the beginning of that period.
Then raise the X figure obtained above by 1 Investments term in years. Below is an overview of how to calculate it. To calculate the CAGR of an investment. The compound annual growth rate or CAGR of an investment is calculated by dividing the ending value by the beginning value taking the quotient to the power of one over the number of years the investment was held and subtracting the entire number by one.
