A family of Microsoft spreadsheet software with tools for analyzing, charting, and communicating data.
One way:
A1: 9/16/1979
A2: 12/31/2011
A3: 27431
A4: 211680
A5: =RATE((A2-A1)/365,0,A3,-A4) ====> 6.53%
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I am using Office 2011 for Mac on a MacBook Pro. I previously used Lotus 123 on a Windows XP machine and calculating the CAGR for an investment was very simple using the @RATE formula to simply input:
I thought using the Excel INTRATE Financial Formula to calculate the the CAGR would work fine because the formula asks you to input similar information which I did as follows:
When I used the INTRATE Financial Formula to calculate the CAGR on a 32.3 year investment, the answer returned was 20.79% when the correct answer should of been 6.53%. The higher interest rate was returned by Excel, and the lower correct interest rate was returned by both Lotus 123 and a 15 year old HP12C calculatopr.
Where in Excel can I find the Financial Formula to accurately calculate the CAGR? It has to be there somewhere because calculating CAGR is a very common financial calculation.
Thank you, Simon Carey ******@comcast.net
A family of Microsoft spreadsheet software with tools for analyzing, charting, and communicating data.
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Answer accepted by question author
One way:
A1: 9/16/1979
A2: 12/31/2011
A3: 27431
A4: 211680
A5: =RATE((A2-A1)/365,0,A3,-A4) ====> 6.53%
Perfecto, your reply was perfect. Thanks.....Simon