Constant Growth Rate Calculator Online

The Constant Growth Rate Calculator is a financial tool used to estimate the future value of an investment. It takes into account the present value (PV), the constant growth rate (g), and the number of periods or years into the future (n). By inputting these values, you can calculate the expected future worth of your investment. The formula for this calculation is as follows:

Formula of Constant Growth Rate Calculator

FV = PV * (1 + g)^n

Where:

• FV is the future value of the investment.
• PV is the present value or initial value of the investment.
• g is the constant growth rate of the investment (expressed as a decimal).
• n is the number of periods or years into the future.

Now, let's simplify the usage of this calculator with a table of general terms and conversions that people often search for:

Table of General Terms and Conversions

Term	Description
ROI	Return on Investment
CAGR	Compound Annual Growth Rate
EBITDA	Earnings Before Interest, Taxes, Depreciation, and Amortization
EPS	Earnings Per Share
P/E Ratio	Price-to-Earnings Ratio
Annual Interest Rate	The yearly interest rate
Inflation Rate	The rate of price increase over time
Currency Conversion	Conversion between different currencies

This table can be a handy reference for understanding terms and conversions commonly used in financial calculations.

Example of Constant Growth Rate Calculator

To better illustrate how the Constant Growth Rate Calculator works, let's consider an example. Suppose you have an initial investment of $10,000 (PV) with an annual growth rate of 5% (0.05 as g), and you want to know its future value in 10 years (n).

1. PV (Present Value): $10,000
2. g (Growth Rate): 0.05 (5%)
3. n (Number of Years): 10

Now, using the formula:

FV = $10,000 * (1 + 0.05)^10 = $16,386.93

So, in 10 years, your $10,000 investment will grow to approximately $16,386.93.

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