17
May

For example, what’s the annual rate of change for for the following data set: 54.0, 59.1, 62.7, 65.2, 67.7, 69.7, 71.2, 73.2, 75.7, 78.6, 81.6? Represents years 1970-1980.


Answer:
take the current year - the prior year to get the change and then divide by the prior year to get the % change.

59.1 - 54 = 5.1 / 54 = 9.44% change


Answer:
To determine the annual rate of change use the following formula:

(year2 - year 1)/(1 year)

So for the first two you would do:

(59.1-54)/1 = 5.1 is the annual rate of change

However, if you wanted to do it over several years, then you can just do:

(Final Year - Initial year)/(number of years)

Hope this helps!

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This entry was posted on Saturday, May 17th, 2008 at 3:06 am and is filed under Other Finance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or TrackBack URI from your own site.

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