Compound Annual Growth Rate (CAGR) is a measure of the rate of return on an investment. The CAGR is often calculated to determine the change in the value of a stock or property. If there is a negative or zero value for the first or last year, the growth is not meaningful.
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HP 12c Calculator  Calculating a Compound Annual Growth Rate
Beginning and ending values are known
To calculate the compound annual growth rate when the beginning and ending values are known, follow these steps:

0, then PMT.

in the beginning value, press CHS, and then PV.

in the ending value, and press FV.

in the number of periods between the beginning and ending values, and then press n.

i to calculate the compound annual growth rate.
Multiple rates of return
To calculate the compound annual growth rate when multiple rates of return are involved, use the following procedure:

0, then PMT.

in the beginning value, press CHS, PV, and then CHS. (If the beginning value is unknown, use $1.)

or subtract each year's return using the % (percent) key. Repeat this step for each rate of return.

each rate of return has been included, press FV to store the sum.

in the number of years, and then press n.

i to calculate the compound annual growth rate.
Example of a compound growth of a property
Ten years ago you purchased a home for $43,000. You have just sold it for $89,800. What is the periodic rate of appreciation?
Keys

Display

Description

Press 0, then PMT

0.00

Stores 0 in PMT

Type 43000, press CHS, then PV

43,000.00

Stores beginning value

Type 89800, then press FV

89,800.00

Stores ending value

Type 10, then press n

10.00

Stores number of years

Press i

7.64

Calculates annual appreciation rate

Example of the growth rate on a fund
What is the annual yield or compound growth rate of a fund that has had the following annual returns?
Year 1

5%

Year 2

15%

Year 3

3%

Year 4

8%

Keys

Display

Description

Press 0, then PMT

0.00

Stores 0 in PMT

Press 1, CHS, then PV

1.00

Stores $1 as initial investment

Press CHS

1.00


Press 5, %, then +

1.05

Adds return for year 1

Type 15, then press %, then +

1.21

Adds return for year 2

Press 3, CHS, %, 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

6.05

Calculates annual yield

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