For example, if a village started the year with a population of 150, then the starting value is 150.
For example, if a village ended the year with a population of 275, then the final value is 275.
Example Problem. A village grows from 150 people at the start of the year to 275 people at the end of the year. Calculate its growth percentage this year as follows: Growth Percentage =275−150150∗100{\displaystyle ={\frac {275-150}{150}}*100} =125150∗100{\displaystyle ={\frac {125}{150}}100} ≈ 0. 8333∗100{\displaystyle 0. 8333100} = 83. 33%{\displaystyle 83. 33%}
For example, if the revenue of a company is $10,000 at the beginning of the period, then the starting value is 10,000.
For example, if the revenue of a company is $65,000 at the period, then the final value is 65,000.
For example, if you want to measure the annual revenue growth of a company between 2011 and 2015, then the number of years is 2015 - 2011 or 4.
Example Problem: A company earned $10,000 in 2011. That same company earned $65,000 four years later in 2015. What’s the annual growth rate? Enter the values above into the growth rate formula to find the answer: Annual Growth Rate =((6500010000)14−1)∗100{\displaystyle =(({\frac {65000}{10000}})^{\frac {1}{4}}-1)*100} =(6. 514−1)∗100{\displaystyle =(6. 5^{\frac {1}{4}}-1)*100} ≈ (1. 5967−1)∗100{\displaystyle (1. 5967-1)*100} = 59. 67% annual growth Note — raising a value a to the 1b{\displaystyle {\frac {1}{b}}} exponent is equivalent to taking the bth root of a. You will likely need a calculator with an “nx{\displaystyle n{\sqrt {x}}}” button, or a good online calculator.
