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June 4th, 2008, 04:23 PM   #1
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Growth Rate

Hi

I need to calculate a growth rate taking into cosideration inflation or perhaps time value of money - I am not sure. I need realistic numbers for a marketing analysis.

PC prices - growth rate - year on base year calc.
- I calculated average unit price by dividing total market $ by total market units.

So for example,

Base yr 1990 - $2450
1991 - $2320
1992 - $2080
1993 - $1930

What is the formula?

Thanks
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June 4th, 2008, 08:29 PM   #2
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Look up the CPI-U for inflation figures for each year and divide your figures by those. Multiplying by the index for the base year gives you real (uninflated) prices. Then find the growth rate between two years by dividing: 1.05 = 5% growth rate.
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