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What is the equation used to figure what the interest rate of return is in a CD for example?
Wiki User
∙ 15y ago
1) Given the CD investment: 20,000 2) Given the 15 months return of: 21,095.20 What formula can I use to find the APY ?? PG.
Wiki User
∙ 15y ago
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Are interest rate and rate of return the same?
Yes, the interest rate and rate of return are exactly the same.
Compound Interest and Your Return?
Compound Interest and Your Return How interest is calculated can greatly affect your savings. The more often interest is compounded, or added to your account, the more you earn. This calculator demonstrates how compounding can affect your savings, and how interest on your interest really adds up!
Explain how do you measure the value of the return on Goodwill in terms of income and expenses?
One way I can think of is: Income - Expenses = Profit (These figures can be found in the Profit and Loss statement) Now substitute the profit figure into the following equation: Profit / Goodwill = Return on Goodwill (The goodwill figure can be found in the Balance Sheet) So even though a brand may be perceived as very strong, if the carying value of the goodwill is very high then the return on goodwill will be lower.
Calculating Return on Your Investments?
Calculating return on your investments is a fundamental part of the investing process. Fortunately, calculating the rate is as easy as it is essential. In many investments, the rate of return is stated as the interest rate that is paid to you, rendering a calculation unnecessary. For example, if you place your money in a certificate of deposit or a bond with a 3% yield, then your return is 3%. For investments like stock, it takes a little more effort. Subtract the money you have now with the money you started with. Divide that figure by the amount you started with and that's your rate! Example: Start: $100,000 End: $110,000 110,000 - 100,000 = 10,000. 10,000/100,000 = .10 So your rate would be ten percent!
Who pays the interest you get from your bank?
The bank pays it to you. The interest reflects the return on the capital you have loaned to the bank.
How do you convert simple interest to compound interest?
There is a quick and dirty way to convert simple interest to compound interest. First you need to know how long it will take to double your initial number. For Example: Let's say that you find an investment that pays 10% simple interest. That means it takes 10 years to double your investment. We then use the rule of 72 to determine the rate of compound return will give an equivalent time. The rule of 72 says that you divide either the rate of return or the time period into 72 to come up with the other. So, in this example we want to know what interest rate would double our money in 10 years. divide 72 by 10 = 7.2 This means that 7.2% compound interest is equal to 10% simple interest.
What is the full form of ROI in finance?
return on interest
How do you figure the risk return ratio?
Brick squad
What is the difference between return on capital and return on investment?
return on capital = earnings before interest and tax / capital employed * 100
What is interestrate?
An interest rate is the rate at which interest is paid by a borrower for the use of money that they borrow from a lender. For example, a small company borrows capital from a bank to buy new assets for their business, and in return the lender receives interest at a predetermined interest rate for deferring the use of funds and instead lending it to the borrower. Interest rates are normally expressed as a percentage of the principal for a period of one year
How to Calculate Investment Returns?
Investing money is a great way to secure your financial future. However, investing money requires a great deal of knowledge. Before you invest, it is a good idea to do a lot of research. In addition, you want to know how much your investment gained. To do this, you need to figure out the return on your investment. Depending on the type of investment you made, there are several ways to do this. Fixed Investments If you are using a fixed investment such as certificate of deposit account, calculating your return is fairly simple. A CD or regular savings account has a fixed rate of interest. You can figure out exactly what you will gain before you open the account. All you need to know is the principal balance, interest rate, and how long you have the account open. For example, let's assume you open a 2 year CD with an initial deposit of $100. The rate of interest you are given is 2%. To figure out your return, you would convert your percentage in to a number you can easily use in calculations. In this case, you would use .02. You then add 1 to this number so that you can multiply it by your initial deposit. Since interest in a CD compounds annually, you want to account for that. Since your CD is two years, raise the interest rate to the second power. This gives you a number of 1.0404. This is the number you would multiply the deposit by, giving you an ending balance of $104.04. That means you earned $4.04 over the course of your CD. The rate of return is calculated by dividing that number by your initial deposit. In this case, the rate of return is 4.04%. Stock Investments Since stock returns vary constantly depending on the market, you can't figure out your exact rate of return until you sell your investment. However, you can estimate it. You also want to factor in any fees you paid with your initial investment. For example, let's say you invested $500 and paid a $10 fee. This means your initial cost was $510. If you sell your investment a year later for $600, the return on your investment would be 17.65%. This is done by subtracting your initial cost from your selling price. You then divide this number by the initial cost to get the return in percentage form.
Do you have to refinance a home to get ex spouse off of mortgage?
Yes. In return you need to get a deed that transfers their interest to you. This should all be done under the supervision of your attorney.Yes. In return you need to get a deed that transfers their interest to you. This should all be done under the supervision of your attorney.Yes. In return you need to get a deed that transfers their interest to you. This should all be done under the supervision of your attorney.Yes. In return you need to get a deed that transfers their interest to you. This should all be done under the supervision of your attorney.
