Using the geometric average return formula the rate is actually 595 and not 6 as stated by the arithmetic mean return method. How to Calculate Geometric Growth Rate With a Scientific Calculator Step 1. Then multiply 100 to get your percentage.
WhereY0is the initialamount 1000 in this example r is the growth rate expressed as a decimal04 in this example and t is the number of years of growth 10 in thisexample.
Calculate geometric growth rate for initial and final value as 8. Growth rates can be based on any interval and can be calculated linearly by taking the average change over that specific period. 879 1010 1009 1333 4. You simply take the percentage increase in dividend over the past year.