Microsoft Office Tutorials and References

In Depth Information

**Creating Indices**

Figure 13-15:
Creating an index from growth data.

Calculating the indices in the third table is also straightforward. The 2003 index is set at 100 (col-

umn B) and is the base for the indices. The formula in cell C23 is

=B23*(1+C14)

This formula is copied to the other cells in the table (range C23:H27).

These indices make it possible to compare performance of, say, offices between any two years,

and to track the relative performance over any two years of any two types of property. So it is

clear, for example, that retail property rental grew faster than office rentals between 2003 and

2009.

The average figures (column I) are calculated by using the RATE function. This results in an

annual growth rate over the entire period.

The formula in I23 that calculates the average growth rate over the term is

=RATE(6,0,B23,–H23,0)

The
nper
argument is 6 in the formula because that is the number of years since the base date.