# Calculate Growth?

• Mar 2nd 2009, 02:10 AM
JacobusV
Calculate Growth?
I have a positive start value in 1996 of +1200 million and a negative end value in 2008 of -7500 million. The values are actual trade balances for a group of specific products. In 1996 the country exported 1200 million more than it imported and in 2008 the country imported more than it exported. How do I calculate the rate of change from 1996 to 2008? I know that compound growth will not work because of the negative end value. Any help please.
• Mar 2nd 2009, 05:06 AM
stapel
What is the exact text of the exercise and its instructions? Thank you! :D
• Mar 2nd 2009, 11:35 PM
JacobusV
Instructions
Sorry, unfortunately I have no instructions nor text for the problem. I only need to know the following: can I calculate rate of change when the start value is positive and then 12 years down the line the end value is negative. If so how do I go about? It is easy to calculate the compound growth when the end value is positive but with a negative end value I am stuck.
• Mar 3rd 2009, 06:58 AM
HallsofIvy
Quote:

Originally Posted by JacobusV
I have a positive start value in 1996 of +1200 million and a negative end value in 2008 of -7500 million. The values are actual trade balances for a group of specific products. In 1996 the country exported 1200 million more than it imported and in 2008 the country imported more than it exported. How do I calculate the rate of change from 1996 to 2008? I know that compound growth will not work because of the negative end value. Any help please.

Why would compound growth not work? The total change is from 1200 to -7500, a decrease of 8700: use a negative rate.