Indexation question: How calculate the index growth if we have year 1 and year 4 figures?
Costs in Year 1 = $100
Costs in Year 4 = $130
What is the yearly growth rate.
So that if I was to multiply Year by "X", and then that result by "X", until year 4 it would give me an answer of $30 dollars.
Thanks,
Jp
Costs in Year 4 = $130
What is the yearly growth rate.
So that if I was to multiply Year by "X", and then that result by "X", until year 4 it would give me an answer of $30 dollars.
Thanks,
Jp
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StephenJR
About 9.1%. It's the cube root of 30%.
My formula is based on a "Constant Annual Growth Rate"...
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Actually, this sounds more like a high school homework question than something that would be needed in real life.
Especially since, even here in Africa, everyone learns how to do that in high school.
Especially since, even here in Africa, everyone learns how to do that in high school.
Given easycapital's question history, I very much doubt that this is homework.
ASKER
Very interesting approaches.
Thank you teylyn for the support.
Storm Seed, you came really close to getting all the points :)
On a serious note, this was to calculate manufacturing indexation.
Thank you.
Thank you teylyn for the support.
Storm Seed, you came really close to getting all the points :)
On a serious note, this was to calculate manufacturing indexation.
Thank you.