**Help*!!* How Do I Compute my Annual Return on Investment?-This is for a seven year time??Help!!*?
started near $4,000 seven years ago
I presently hold $1,019,682
How do I digit out my annual return on investment?
gratefulness!
Answers:
The annual return can not really be calculated by dividing the total returns by number of years.
The correct method is here:
Your Initial Investment : 4000
Current Value of Investment: 1019682
So Holding Period Return (HPR) is
1019682/4000 = 254.9205
So the rate of return = (254.9205-1)=253.9205*100= 25392.05%
The HPR is not the proper method to calculate the return. The correct method is to calculate CAGR i.e. Compounded Annualised Growth Rate.
Annual HPR = (HPR)^1/n
Where n= number of years
= (253.9205)^1/7=2.205607613
So the CAGR= 2.205607613-1
=1.205607613*100
=120.5607%
You can try-out this result by calculating adjectives good point (FV) bu putting following values as we own found above:
Present Value=4000
FV =?
N=7
Rate of Interest = 120.5607
The result would be your current worth surrounded by approx. Will not be exact due to fractions.
Hi,
Your overall returns for 7 years are roughly speaking 2500%. You can divide it by 7 for calculating annual return. You can call round http://investments.checkouttoday.info... for some adjectives tips. Good luck!
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Need assist near my pattern site?
I presently hold $1,019,682
How do I digit out my annual return on investment?
gratefulness!
Answers:
The annual return can not really be calculated by dividing the total returns by number of years.
The correct method is here:
Your Initial Investment : 4000
Current Value of Investment: 1019682
So Holding Period Return (HPR) is
1019682/4000 = 254.9205
So the rate of return = (254.9205-1)=253.9205*100= 25392.05%
The HPR is not the proper method to calculate the return. The correct method is to calculate CAGR i.e. Compounded Annualised Growth Rate.
Annual HPR = (HPR)^1/n
Where n= number of years
= (253.9205)^1/7=2.205607613
So the CAGR= 2.205607613-1
=1.205607613*100
=120.5607%
You can try-out this result by calculating adjectives good point (FV) bu putting following values as we own found above:
Present Value=4000
FV =?
N=7
Rate of Interest = 120.5607
The result would be your current worth surrounded by approx. Will not be exact due to fractions.
Hi,
Your overall returns for 7 years are roughly speaking 2500%. You can divide it by 7 for calculating annual return. You can call round http://investments.checkouttoday.info... for some adjectives tips. Good luck!