My Math Forum Growth Rate

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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 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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