Friday, January 20, 2012

Mathematicians, how do you properly calculate the percentage of return on my investment?

If i spent $182 on an investment and it makes $56 for a total of $238, how do I calculate the percentage of return on my investment. I do it a couple of different ways and come up with different answers, so I would like to know the correct way.



Thanks ; )Mathematicians, how do you properly calculate the percentage of return on my investment?
It's a simple formula actually.



% return = (final price - initial price) / initial price * 100%



In your case,

(238-182)/182 *100% = 30.8%



Keep printing that money!Mathematicians, how do you properly calculate the percentage of return on my investment?
It increased by $56 and 56 is 30.8 percent of your cost of $182. That's a very good return. However, that is not an annual return. It is the return for the time it took to get to $238.Mathematicians, how do you properly calculate the percentage of return on my investment?
The best investment tool you can own is a financial calculator. Either a Hewlet Packard or the lesser expensive Texas Instrument. It is so easy.



N= Notes or # of payments/months etc.

P=Princible

PV=Present Value

FV=Future Value

i-Interest or 5 of return



I own both and have used them since mid. 80's

Glad I bought them
  • jayco
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