We sometimes need to find out how long it will take a sum of money (or something else, such as earnings, population, or prices) to grow to some specified amount. For example, if a company’s sales are growing at a rate of 20% per year, how long will it take sales to double?
To find the number of year we will user NPER function in excel. Since the amount should be double we will used present value of 100 and Future value of 200 in the formula
Rate 20.00% ← Growth Rate
PMT 0 ← 0
PV -100 ← Present value assumed 100
FV 200 ← Future value 2 x 100 = 200
Year 3.801784017 ← Select Cell to see calculation. =NPER(20%,0,-100,200)