Thread: 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.

What is the exact text of the exercise and its instructions? Thank you!

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.

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.