Catch-Up Growth refers to a period of accelerated growth experienced by an organism, economy, or individual to compensate for a previous period of delayed or slowed growth. This phenomenon is often observed in children who have experienced malnutrition or illness, but later exhibit a rapid increase in height and weight once their health improves. Similarly, in economics, it refers to a period of rapid economic growth in a country or region following a period of stagnation or decline.
The formula to calculate the catch-up growth (CG) is:
\[ CG = \left( \frac{FV - PV}{n \times PV} \right) \times 100 \]
Where:
Let's say the future value is $10,000, the present value is $5,000, and the number of periods is 2 years. Using the formula:
\[ CG = \left( \frac{10000 - 5000}{2 \times 5000} \right) \times 100 \]
We get:
\[ CG = \left( \frac{5000}{10000} \right) \times 100 = 50 \]
So, the catch-up growth rate (\( CG \)) is 50% per period.