: SAGE: compound growth rates

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compound growth rates

The compound growth rate for a pair of values, V1 and V2, and a number of time periods, n, is the constant growth rate, g, that will cause V1 to grow to V2 over n time periods. In equation form, g must satisfy If you know V1, V2, and n, then you can solve for g: The following examples can help explain the uses of the compound growth rate formulas. [Source: Encyclopedia of Health Care Management; Compound Growth Rate]

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