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HP 17B, 17Bii, 17Bii+, 19B, 19Bii, and 27S Calculators - Calculating Compound Growth Rate

Description
The compound growth rate is often calculated to determine the change in the value of a stock or property. These calculations can be done using the TVM menu.
The instructions for how to do this are in “Personal Investment and Tax Planning,” a supplemental HP manual which is no longer available for sale. Below is the information taken from the relevant portion of this manual.
Instructions
To calculate the average periodic compound growth rate when the beginning and ending values are known:
  1. Display the TVM menu.
  2. Clear the TVM variable and store 1 and the number of payments per year in P/YR.
  3. Store the following variables:
    • Beginning value as a negative number in PV
    • Ending value in FV
    • Number of periods between beginning and ending values in N
  4. Press I/YR to calculate the average periodic compound growth rate of return.
To calculate the periodic compound growth rate when the periodic rates of return is known, do the following:
  1. Display the TVM menu.
  2. Clear the TVM variables and store the number of payments per year in P/YR.
  3. Store 1 in PV to initialize the beginning value.
  4. Accumulate the compounded value of the individual rates of return as percentages.
  5. Press +/-, then FV to store the sum as the future value.
  6. Store the number of returns in N.
  7. Press I/YR to calculate the average periodic compound growth rate.
Example calculating the average periodic compound growth rate when the beginning and ending values are known
Twenty-three years ago you purchased a home for $28,000. You have just sold it for $113,000. What is the annual rate of appreciation in the value of the property?
Keys:
Display:
Description:
(Shift) [Clear Data] [Other] 1 [P/YR] [END] [EXIT]
Clears TVM and sets P/YR to 1 in End mode
23 [N]
N=23.00
Stores number of years
28000 [+/-] [PV]
PV=-28,000
Stores beginning value
113000 [FV]
FV=113,000
Stores ending value
[I/YR]
I%YR=6.25
Calculates annual appreciation rate.
Example calculating the periodic compound growth rate when the periodic rates of return are known
You read in the financial section that the annual rate of return on a certain stock has fluctuated quite a bit. The following table summarizes the percent rates of return for 7 years.
Year
% rate of return
1981
-12
1982
15
1983
27
1984
-8
1985
12
1986
25
1987
5
What is the periodic compound growth rate of the stock?
Keys:
Display:
Description:
(Shift) [Clear Data] [Other] 1 [P/YR] [END] [EXIT]
Clears TVM and sets P/YR to 1 per year.
1 [PV]
PV=1
Initializes the beginning value.
[-] 12 [%] [+] 15 [%] [+] 27 [%] [-] 8 [%] [+] 12 [%] [+] 25 [%] [+] 5 [%] [=]
1.74
Sums periodic rates of return.
[+/-] FV
FV= -1.74
Stores sum as future value.
7 [N]
N=7.00
Stores number of years.
[I%YR]
I%YR=8.22
Calculates periodic compound growth rates.

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