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June 4th, 2008, 04:23 PM  #1 
Newbie Joined: Jun 2008 Posts: 1 Thanks: 0  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 
June 4th, 2008, 08:29 PM  #2 
Global Moderator Joined: Nov 2006 From: UTC 5 Posts: 16,046 Thanks: 938 Math Focus: Number theory, computational mathematics, combinatorics, FOM, symbolic logic, TCS, algorithms 
Look up the CPIU 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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