Education Technology

# Knowledge Base

## 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.