Description : How do I calculate average annual rate of return?
Last Answer : You want to find the solution of 53,000*x**40 = 650,000, Divide 650,000 by 53,000 and then take the 40th root of that. 40th root is the same as raising to the power or ¼0 = .025. I get a little under 1.065, which means a 6.5% average growth rate.