RatedrillCompound annual growth rate
A time value of money problem from Ratedrill. Solve it with one answer box, with fresh numbers on every attempt and the formula, calculator keystrokes and Excel version in the worked answer, and it is checked the moment you submit.
The task
A company's revenue was $70,000 in 2012 and $135,000 in 2015. What was its compound annual growth rate over that span?
What this problem teaches
Set P/Y = C/Y = 1, so I/Y is the rate per period. Cash you pay out is negative and cash you receive is positive.
A hint if you get stuck
CAGR = (end / start)^(1 / years) - 1. From year 0 to year n there are n years of growth.
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