Cagr=+(l13/f13)^(0.1666667)-1

[Donovan]

Can anyone explain how the formula works and what the ^ means in this formula.

[Toppers]

It divides the contents of L13 by contents of F13 and raises the result to
the power of 0.166667 [which equates to finding the 6th root of the division]
and then subtracts 1.

^ means to the power of i.e 2^4 = 2*2*2*2

HTH

"Donovan" wrote:

>
> Can anyone explain how the formula works and what the ^ means in this
> formula.
>
>
> --
> Donovan
> ------------------------------------------------------------------------
> Donovan's Profile: http://www.excelforum.com/member.php...o&userid=35234
> View this thread: http://www.excelforum.com/showthread...hreadid=567548
>
>

[Donovan]

Good answer thanks

[Fred Smith]

I would expect the formula is calculating Compound Average Growth Rate. If so,
L13 would be the earnings, F13 is the amount invested, and 0.1666667 is the term
(ie, 1/6 of a year or two months).

--
Regards,
Fred


"Donovan" <[email protected]> wrote in
message news:[email protected]...
>
> Can anyone explain how the formula works and what the ^ means in this
> formula.
>
>
> --
> Donovan
> ------------------------------------------------------------------------
> Donovan's Profile:
> http://www.excelforum.com/member.php...o&userid=35234
> View this thread: http://www.excelforum.com/showthread...hreadid=567548
>