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To calculate the rate of return on an investment, you subtract the initial investment amount from the final value of the investment, then divide that result by the initial investment amount. Multiply the result by 100 to get the percentage rate of return.

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7mo ago

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How can I calculate the rate of return on my investment?

To calculate the rate of return on your investment, subtract the initial investment amount from the final value of the investment, then divide that result by the initial investment amount. Multiply the result by 100 to get the rate of return as a percentage.


Calculate rate of return?

NPV/Initial Cost of Investment


How do you calculate the capitalization rate for a property investment?

To calculate the capitalization rate for a property investment, you divide the property's net operating income by its current market value. This rate helps investors assess the potential return on their investment.


How do you calculate a capitalization rate for a real estate investment?

To calculate a capitalization rate for a real estate investment, you divide the property's net operating income by its current market value. This rate helps investors assess the potential return on their investment.


How do you find the rate of return on an investment?

To find the rate of return on an investment, you calculate the percentage increase or decrease in the value of the investment over a specific period of time. This is done by dividing the difference between the final value and the initial value of the investment by the initial value, and then multiplying by 100 to get the percentage return.


How do you Calculate a Return on an Investment?

The return on investment formula:ROI=(Gain from Investment - Cost of Investment)/Cost of Investment.


How do you calculate arr?

Average Rate of Return is calculated by using the formula: (Net return per year / initial investment) x 100 Average Rate of Return is calculated by using the formula: (Net return per year / initial investment) x 100


How do calculate ARR?

Average Rate of Return is calculated by using the formula: (Net return per year / initial investment) x 100 Average Rate of Return is calculated by using the formula: (Net return per year / initial investment) x 100


Calculate the value of each investment based on your required rate of return?

To calculate the value of each investment based on your required rate of return, you can use the discounted cash flow (DCF) method. This involves estimating future cash flows from the investment and discounting them back to their present value using your required rate of return as the discount rate. The formula is: Present Value = Cash Flow / (1 + rate of return)^n, where n is the number of periods. Summing the present values of all future cash flows will give you the total value of the investment.


How do you perform an average rate of return calculation for an investment portfolio?

To calculate the average rate of return for an investment portfolio, you add up the returns of all the investments in the portfolio over a specific period of time and then divide that total by the number of investments. This gives you the average rate of return for the portfolio.


How can I calculate the annual rate of return over multiple years for my investment portfolio?

To calculate the annual rate of return over multiple years for your investment portfolio, you can use the formula for compound annual growth rate (CAGR). This formula takes into account the initial and final values of your investment, as well as the number of years the investment has been held. You can calculate CAGR using the following formula: CAGR (Ending Value / Beginning Value) (1 / Number of Years) - 1 By plugging in the values for the ending value, beginning value, and number of years, you can determine the annual rate of return for your investment portfolio.


How do you calculate the accounting rate of return please can you give specific examples?

ARR isalso known as average rate of return it measures the overall profitability of an investment it has four steps to calculate 1-caculate all cash in flow 2-subtract initial investment 3-divide the figure by life span of the investment 4-calculate what percentage is this of the initial investment by using average annual profit/initial investment x100