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# HP 10b Calculator - Calculating Compound Growth Rate

Description
The average compound growth rate is often calculated to determine the change in the value of a stock or property.
Calculator symbol key
The procedures in this document use the following text to represent symbol keys:
 Key Description Text Representation colored key; shift key SHIFT
To calculate the compound annual growth rate when the beginning and ending values are known:
1. Press 1, SHIFT, P/YR, 0, then PMT.
2. Key in the beginning value and press [+/-], then PV.
3. Key in the ending value and press FV.
4. Key in the number of periods between the beginning and ending values and press N.
5. Press I/YR to calculate the compound annual growth rate.
To calculate the compound annual growth rate when multiple rates of return are involved:
1. Press 1, SHIFT, P/YR, 0, then PMT.
2. Key in the beginning value and press [+/-], PV, then [+/-]. (If the beginning value is not known, use \$1.)
3. Add or subtract each year's return using the [%] key. Repeat step 3 for each rate of return.
4. When each rate of return has been included, press FV to store the sum.
5. Key in the number of years and press N.
6. Press I/YR to calculate the compound annual growth rate.
Example of calculating the periodic rate of appreciation
Ten years ago a home was purchased for \$43,000. It recently sold for \$89,800. What is the periodic rate of appreciation?
 Keys Display Description Press 1, SHIFT, then P/YR 1.00 Sets 1 period per year Press 0, then PMT 0.00 Stores 0 in PMT Press 43000 [+/-], then PV -43,000.00 Stores beginning value Press 89800, then FV 89,800.00 Stores ending value Press 10, then N 10.00 Stores number of years Press I/YR 7.64 Calculates annual appreciation rate
Example of calculating annual yield
What is the annual yield or compound growth rate of a fund that has had the following annual returns?
• Year 1: 5 percent
• Year 2: 15 percent
• Year 3: 3 percent
• Year 4: 8 percent
 Keys Display Description Press 1, SHIFT, then P/YR 1.00 Sets 1 period per year and stores 0 in PMT Press 0, then PMT 0.00 Press 1 [+/-], then PV -1.00 Stores \$1 as initial investment Press[+/-] 1.00 Press [+], 5, [%], then [=] 1.05 Adds return for year 1 Press [+], 15, [%], then [=] 1.21 Adds return for year 2 Press [-], 3, [%], then [=] 1.17 Subtracts return for year 3 Press [+], 8 [%], then [=] 1.26 Adds return for year 4 Press FV 1.26 Stores amount at end of term Press 4, then N 4.00 Stores number of years Press I/YR 6.05 Calculates annual yield

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