SQRT() exists, but require Root to power of 7 -see text

Posted by Robert Lund on October 07, 2000 5:50 AM

Item cost £a pounds 7 years ago, no price increase until now, say £b.

What would the annual percentage incresae be (compound interest).

The calculater version:

7 [x-root] (b/a) - 1 * 100 = compund percentage increase over the 7 years.

example:
7 [x-root] (43.9/37) - 1 * 100 = 2.47% Answer

Posted by Celia on October 07, 2000 7:18 AM

Robert
Have a look in on-line Help at the XIRR worksheet function. Using your example :-

=XIRR({-37,43.9},{"1/1/1993","1/1/2000"})*100

Celia

Posted by AB on October 09, 2000 7:29 AM

A square root can be expressed as:
x^(1/2)

Therefore...
A higher power root would take the form of:
x^(1/7)

and for your formula...
=(((43.9/37)^(1/7))-1)*100