Compound Annual Growth Rate Calculation
UpdatedDec 23, 2009
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.