If you click on the *File* menu and then the *New* sub-menu, you will see a list of views that you can display.

The last one listed is the “CAGR” view, and the screen below is displayed when you click on the *OK* button to open the highlighted view within the Finance101 application.

Now, the purpose of this view is to make it easy for you to figure out several things. Simply click on the radio button to solve for the item that has the radio button on it.

- Compounded Annual Growth Rate (CAGR) – or Return On Investment (ROI), if given the initial investment (PV), Current Value (FV), for the Term (length of time)
- Term – Will tell you how long it took to get the compounded rate (ROI) to increase the initial investment (PV) up to the current value (FV)
- Current Value (EV) – How large the investment will be worth if it achieves the compounded rate chosen along with the initial value, and the length of time that the investments received that compounded rate
- Initial Investment (PV) – How much money needs to be invested initially in order to have the value (i.e. Current Value or FV) be what is given, and for the given length of time (Term), with the given compounded rate (CAGR)
- What does the above information mean – explains in common english terms what the results are. Notice that the text changes dynamically as you type, just like all the other fields

You can see what the default values are and what their result is, but let’s say you take $1,000 and invest it for 20 years and earn 16% income … the final result is $19,460.76.

To do that, click the radio button next to the “Current Value (FV)” title. Change the initial investment to $1,000 by entering it in the field next to “Initial Investment (PV)”. Change the length of time (Term) to 20 years by typing “20″ – without quotes of course – into the field. And finally type in “16″ – again without quotes – in the “CAGR (ROI)” field. You will see as you type, the “Current Value (FV)” and the text in the bottom field will change immediately … well almost immediately.

Now, let’s figure out how much of a compounded rate (CAGR), would have to be achieved over 20 year period, if we started with $1,000 and ended up with $25,000. All we have to do is to click on the “CAGR” radio button, and change the “Current Value (FV)” to 25000. You will see that the compounded growth rate woud be 17.46%, which would be fantastic making 25 times the amount you initially invested 20 years later!

Go to the Finance101 calculator home page

How to use Finance101′s “Finance 101 view”

How to use How to use Finance101 amortization calculator

How to use Compounding view

At this moment I am going away to do my breakfast, afterward having my

breakfast coming yet again to read further news.

Good information. Lucky me I came across

your blog by chance (stumbleupon). I’ve saved it for later!

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