- 1). Subtract the ending investment value from the beginning investment value to find the raw growth of the investment for the specified time period. For example, if you started with $700 and the investment value increased to $750 in two months, subtract $750 from $700 to get $50.
- 2). Divide the growth by the initial amount to find the periodic growth. In this example, divide $50 by $700 to find the growth rate for the two-month period equals approximately 0.0714.
- 3). Add 1 to the periodic growth rate. In this example, add 1 to 0.0714 to get 1.0714.
- 4). Raise the result to the power of the number of periods per year. In this example, because each year has six two-month periods, raise 1.0714 to the sixth power to get 1.5126.
- 5). Subtract 1 from the result to find the annual rate expressed as a decimal. In this example, subtract 1 from 1.5126 to find the annual rate expressed as a decimal equals 0.5126.
- 6). Multiply the result by 100 to find the annual growth rate. In this example, multiply 0.5126 by 100 to find the annual growth rate equals 51.26 percent.
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