CAGR Formula

[tMinuszero]

Hi,

Could somebody explain how to implement the following formula in object pascal code please? Sticky point is implementing (^) power bit.

y = a(1 + r)^x

where:
y = future compounded value
a = initial value
r = growth rate
x = number of periods

[Bart]

Take a look at the Power() function (unit math).

Bart

[tMinuszero]

Thanks Bart..

I don't know enough coding to use IDE yet.

Just wanted to know sample code implementing the above formula.

[lainz]

Go to Lazarus and do Project > New Project > select Simple Program and copy this (hope the formula is OK typed, else fix it yourself):

program Project1;

Code: Pascal  [Select]

1. uses
2.   Math;
3.  
4. function CAGR(initial_value, grouth_rate, number_of_periods: double): double;
5. begin
6.   result := initial_value * Power(( 1 + grouth_rate), number_of_periods);
7. end;
8.  
9. begin
10.   writeln(CAGR(5.1, 10.4, 2.2):0:2);
11.   readln();
12. end.
13.        

[JD]

@tMinusZero

Look in the Math unit. It has some basic financial functions that can help you with capital budgeting calculations. You can use them to put together more complicated equations.

Code: Pascal  [Select]

1. { Financial functions }
2.  
3. function FutureValue(ARate: Float; NPeriods: Integer;
4.   APayment, APresentValue: Float; APaymentTime: TPaymentTime): Float;
5.  
6. function InterestRate(NPeriods: Integer; APayment, APresentValue, AFutureValue: Float;
7.   APaymentTime: TPaymentTime): Float;
8.  
9. function NumberOfPeriods(ARate, APayment, APresentValue, AFutureValue: Float;
10.   APaymentTime: TPaymentTime): Float;
11.  
12. function Payment(ARate: Float; NPeriods: Integer;
13.   APresentValue, AFutureValue: Float; APaymentTime: TPaymentTime): Float;
14.  
15. function PresentValue(ARate: Float; NPeriods: Integer;
16.   APayment, AFutureValue: Float; APaymentTime: TPaymentTime): Float;
17.  

You are looking for the future value of y so use the FutureValue function OR the solution lainz proposed above.

JD

[tMinuszero]

Thanks a lot guys................

Appreciated.