Compound Annual Growth Rate Calculation
How do I calculate the future value of an investment with a 12% compounded return.
Hello, can you tell me if I invest x amount of money for period of 25 years which grows at the rate of 12% compounded annually - what formula/process should i apply to arrive at the maturity amount given that rate of inflation is 6%? Thanks for your help in advance!
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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