Abstract: Growth rates and factors measure the change of a variable through time. The growth factor is computed by dividing the value of a variable at the end of a period by the value it had at the beginning of the period. Knowing the growth factor and the initial value of a variable, we can identify its future value. The present value of a variable equals its value at the end of the period divided by its growth factor. The growth rate of a financial capital during a period measures its Internal Rate of Return (IRR). When financial capital evolves throug...
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Topics: 
Econometrics
Statistics