How to calculate total growth from a set of given yearly growth rates?

Question

The yearly inflation rate of Nigeria was 10.5% in '07, 13.5% '06 and 16.5% '05. I wanted to calculate total cumulative change from 2005 to 2007 using excel. I used the crude way by starting with 100 and using 100*(1+2005 rate) = A then A*(1+2006 rate) etc and reaching 146.11. Alternatively I used some basic maths to work out total growth as x+y+z+xy+xz+yz+xyz (taking 2005 rate as x, 2006 as y and 2007 as z).

Point is I consider both methods as inelegant. I can't use first method in sheet where i have to work it out for many (100s of countries) and second method becomes very cumbersome for periods more than 3 yrs.

Can somebody tell me a better way to do it, preferably a formula that can be fed in a single Excel cell and is independent of no. of years?

Answer 1

Since the growth in each year is different, you can't do this independent of the number of years. You could only do so if the growth were the same for each year (say, 10% every year) or if there were a pattern from year to year (say, 10%, 10.5%, 11%, 11.5%, etc.). Sorry!

Answer 2

Money is one of the component of economy growth not the economy itself. What UPA government has done and doing is increasing living cost, taxes and borrowing by burdening common citizens to show financial status of the country to be the economical growth of the country. I wonder if the borrowing of the govt will reflected in economic growth rate. I consider economical growth to be, living cost coming down, financial status & saving of every family improves, enough food for all, equal distribution of money, job opportunity etc. What UPA is doing is increasing prices on all commodities by stocking & rotting grains, letting it in the hands of private firms, constantly increasing fuel prices etc. Money is made from the suffering of people not by economical growth of the country.