Compound Annual Growth Rate

Description

  • geometric FV = PV * (1 + geometric) ** years

  • continuous FV = PV * exp(continuous * years)

Usage

1
CAGR(PV, FV, fractional_years, type = "geometric")

Arguments

PV

the price at the beginning of the period

FV

the price at the end of the period

fractional_years

the length of the period in (fractional) years

type

either "geometric" or "continuous"

Value

the compounded rate of return, annualized

Note

see r_continuous and r_discrete

Author(s)

George Fisher GeorgeRFisher@gmail.com

Examples

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PV    <- 9000
FV    <- 13000
years <- 3
(geometric  <- CAGR(9000, 13000, years, type="geometric"))
(continuous <- CAGR(9000, 13000, years, type="continuous"))
9000 * (1 + geometric) ** years
9000 * exp(continuous * years)

## Not run: 
error <- CAGR(9000, 13000, years, type="error")
## End(Not run)