Compound Annual Growth Rate Calculation

READER QUESTION

How do I calculate the future value of an investment with a 12% compounded return.

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Bills.com Resident Expert
Dec 12, 2011
BILL'S ANSWER

You are asking about CAGR or compund annual growth rate. In your case, your gross return would compound at 12% and net return would compound at 6%.

Just solve for the future value.

http://en.wikipedia.org/wiki/Future_value

http://www.investopedia.com/terms/c/cagr.asp

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