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Old 09-14-2013, 08:31 AM   #7
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I actually missed a step... my excel I use:
[(B-A)/A]/x

Assuming you started with $100, by your example, at end of year 1 you had $92.8 (100*0.928) while year 2 is $104.04 (92.8*1.1211). The formula works as
(104.04-100)/100=0.0404
And 0.0404/2 (x=2 years)=0.0202 or 2.02%.

Precisely, at yearly measurement, take square (since 2 year) root of 0.0404=0.020099, you have about 2%.
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