# Thread: Calculating annual average growth

1. ## Calculating annual average growth

Hi, Here are my expenses:

2017: 1000$2018: 1000$

2019: 1000$Yearly Interest rate: 3% ----------------------- Capitalizing the costs above (= Present value terms = PV) 2017: 1000$/(1+3%)^1 = ~971

2018: 1000$/(1+3%)^2 = ~943 2019: 1000$/(1+3%)^3 = ~915

------------------------------
Expenses in 2017-2019 in PV terms = ~2829

Average expenses in 2017-2019 in PV terms = ~943
--------------------------------------------------
My question: Is the average line (~943) correct?

If any of you are familiar with the PMT function in Excel, Should I use it here instead? if yes, how?

2. ## Re: Calculating annual average growth

Originally Posted by GIS2017
Hi, Here are my expenses:

2017: 1000\$2018: 1000\$

2019: 1000\$Yearly Interest rate: 3% ----------------------- Capitalizing the costs above (= Present value terms = PV) 2017: 1000\$/(1+3%)^1 = ~971

2018: 1000\$/(1+3%)^2 = ~943 2019: 1000\$/(1+3%)^3 = ~915

------------------------------
Expenses in 2017-2019 in PV terms = ~2829

Average expenses in 2017-2019 in PV terms = ~943
--------------------------------------------------
My question: Is the average line (~943) correct?

If any of you are familiar with the PMT function in Excel, Should I use it here instead? if yes, how?

reposted to fix \$signs 3. ## Re: Calculating annual average growth Hi, Here are my expenses: 2017: 1000$

2018: 1000$2019: 1000$

Yearly Interest rate: 3%
-----------------------
Capitalizing the costs above (= Present value terms = PV)

2017: 1000$/(1+3%)^1 = ~971 2018: 1000$/(1+3%)^2 = ~943

2019: 1000\$/(1+3%)^3 = ~915

------------------------------
Expenses in 2017-2019 in PV terms = ~2829

Average expenses in 2017-2019 in PV terms = ~943
--------------------------------------------------
My question: Is the average line (~943) correct?

If any of you are familiar with the PMT function in Excel, Should I use it here instead? if yes, how?

4. ## Re: Calculating annual average growth

Originally Posted by GIS2017
Here are my expenses:

2017: 1000

2018: 1000

2019: 1000

Yearly Interest rate: 3%
-----------------------
Capitalizing the costs above (= Present value terms = PV)

2017: 1000/(1+3%)^1 = ~971

2018: 1000/(1+3%)^2 = ~943

2019: 1000/(1+3%)^3 = ~915

------------------------------
Expenses in 2017-2019 in PV terms = ~2829

Average expenses in 2017-2019 in PV terms = ~943
--------------------------------------------------
My question: Is the average line (~943) correct?

If any of you are familiar with the PMT function in Excel,
should I use it here instead? if yes, how?
All I can say is the 3 PV calculations are correct.

The rest of your questions make no sense.
You need to learn about financial formulas.