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how to calc geometric mean. Convert 10 to a decimal and add 1 to it to get 110. Katex is not defined Where r is the rate of return and n is the number of periods.
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A geometric approach to explain the formula is through rectangles and squares. To calculate compounding interest using the geometric mean of an investments return an investor needs to first calculate the interest in year one which is 10000 multiplied by 10 or 1000. 3000033000 12 314633.
An alternative way to write the formula is X1 x X2.
Thus to arrive at the value of 1000 after 3 years the return will be taken at 698 every year. An alternative way to write the formula is X1 x X2. 3000033000 12 314633. Use the 2 decimal values to find the geometric mean.
