Growth Rates

Question 1

State the Compounding Growth Rate formula

Answer 1

For a period t, T = (1+g)^T-1

Question 2

State the Annualised Growth Rate formula for long term growth

Answer 2

For a period t,T (yT/yt)^1/T -1

Question 3

State the Annualised Growth Rate formula for short term growth

Answer 3

For a period t,T (yT/yt)^T -1

Question 4

State the adding and subtracting rule for growth rates

Answer 4

Growth of A * B = A + B
Growth of A / B = A - B