What factors affect the rate of return of an investment at maturity?
The rate of return on an investment, adjusted for external factors, such as interest paid or received i.e. factors that are not the actual investment itself.
This variable is not constant. Your return on investment can depend on how much you put into it, how much you make from it, and other factors.
return on investment
A variety of factors will influence your return-on-investment. Use of a calculator like http://www.calcxml.com/do/inv04 will allow you to consider these factors and more that are applicable to your specific situation.
The rate of return (ROI) of an investment depends on many factors including: other costs relating to the use or production of the investment, duration of time held, income produced by the investment, etc.
A fixed-income investment generally pay interest on specific schedule with a promise to return the principle at maturity, but is not guaranteed. Basically they provide regular income that is predictable.
The return on investment formula:ROI=(Gain from Investment - Cost of Investment)/Cost of Investment.
The inflation affects the investment indirectly when read with the return. Example if an investment provides a return of 6%, and the inflation during the same period is 5%, the investment in real terms increases only by 1% and not by 6%, as inflation eats away returns to the tune of 5%.
Economic profit is the profit made on an investment of some sort in which inflation and other economic factors have been considered. Normal return on investment is just the net profit made in the investment (simple subtraction).
Investment Returns Meeting your long-term investment goal is dependent on a number of factors. This not only includes your investment capital and rate of return, but inflation, taxes and your time horizon. This calculator helps you sort through these factors and determine your bottom line. Click the "View Report" button for a detailed look at the results.
Return on investment is calculated by subtracting investment capital from the return, taking into account inflation, taxation and the time frame involved.
The expected rate of return is simply the average rate of return. The standard deviation does not directly affect the expected rate of return, only the reliability of that estimate.