Growth formula: Final = Initial × (1 + r)^t = 22,500 × (1.20)^3.

Tue, 05 May 2026 08:41:30 +0000

# Growth Formula Explained: How Final Value Equals Initial Value × (1 + r)^t — Mastering Compound Growth Understanding exponential growth is essential for businesses, investors, and anyone aiming to forecast future performance. One of the most powerful tools for modeling compound growth is the growth formula:
Final = Initial × (1 + r)^t In this article, we’ll break down how this formula works, explore a practical example, and show how to apply it to real-life scenarios—including calculating a final value of 22,500 growing at a rate of 20% per period (r = 0.20) over 3 time periods (t = 3). ---