How do you calculate the annually compounded return in Excel?

Answer by  Christian9247 (5042)

A compound annual growth rate measures the rate of return for an investment. These are called CAGRs. They are calculated by a formula, 100*(P2-P1)/P1(^10)-P1. This will give you the yearly amount compounded by your investment and how much was earned from it. It should be a smooth rate if your investment has reached maturity.

Answer by  Swizle37 (35)

By using the equation 100*(P2-P1)/P1(^10)-P1. This formula will give you the yearly amount of compounded return earned each year from interest.

Answer by  ahsanmahmoodawan (1169)

a compound annual growth rate (CAGR) measures the rate of return for an investment such as a mutual found or bond over an investment period such as 5 or 10 year the cagr is also called a smoothed rate of return because it measures the growth of an investment as if it had grown at steady rate on annual compound