ABSTRACT
This chapter introduces the various types of growth rate, their application, and how to calculate them mainly using Excel. Growth may be used to study the increase in population size, the measure of economic activity of a nation, corporate performance, and returns on investment. Measuring growth rate is of interest to various stakeholders. The chapter presents an exposition of the concept and calculation of the average annual growth rate. The average annual growth rate over a period of time is the average of growth rate for each year. It refers to the average increase or decrease in the value of a variable over a specified period. The chapter explains the relevance, application, and calculation of compound annual growth rate. Compound annual growth rate enables assessment of investment performance within the investment period. It allows a quick comparison between alternative investment schemes’ performance or their expected future values.
