Solution 14820: Calculating Compounded Annual Growth Rate (CAGR) on the BA II PLUS™ or BA II PLUS™ PROFESSIONAL.
How do I calculate Compounded Annual Growth Rate (CAGR) on a BA II PLUS or BA II PLUS PROFESSIONAL?
Please refer to the example provided below to calculate Compounded Annual Growth Rate (CAGR) on a BA II PLUS or BA II PLUS PROFESSIONAL.
Example: Calculate the CAGR of an investment that grows from $10,000 to $19,500 in three years:
• Press [2nd] [P/Y], input 1, then press [ENTER] [2nd] [QUIT].
• Press [2nd] [CLR TVM].
• Input 3 and press [N].
• Input 10000 and press [+/-] [PV].
• Input 19500 and press [FV].
• Press [CPT] [I/Y]. The calculator should display 24.93% as the solution.
NOTE: Compounded Annual Growth Rate (CAGR) is the year-over-year growth rate of an investment over a length of time. This can be calculated by taking the nth root of the total percentage growth rate (n = the number of years in the period considered). The formula is CAGR= (Ending Value / Beginning Value)^(1/n) - 1.
Please see the BA II PLUS family guidebooks for additional information.