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Finding interest rate compounded annually watch

1. Hi!

I am studying corporate finance and could not find in the book how to determine interest rate needed to get x amount of money.

For instance, GE paid 2.45 billion dividends in 2012, and then it paid 3.68 billion in 2014.

Over these two years, what is the annual growth rate?

I suppose the formula might look like this?

2.45 x (1+x%)(1+x%) = 3.68

How do I find 'x'?
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Thank you for the help!

Kind regards,
Paul.
2. (Original post by Kinlejus)
Hi!

x

Paul.
Not sure if the formula is right but if it is then
3. Oohh, so easy

Thank you!
4. (Original post by Kinlejus)
Oohh, so easy

Thank you!
5. Thanks
6. Good answer - if period of time is over 2 periods (normally measured in years) then same approach but you're finding the nth root - eg if over a 3 year period then same approach, but you're finding the Cube root of one no/another & then subtract 1

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