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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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