Jul 6 2009

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

If i spent 2 on an investment and it makes for a total of 8, 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 ; )

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  1. Financial-Calculator » Lifting the Veil on Debt Consolidation UK | Finance, Loan, Debt ... wrote:

    [...] Mathematicians, how do you properly calculate the percentage of …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 … [...]

    July 6th, 2009 at 10:51 pm
  1. metsf1 said:

    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!

    July 6th, 2009 at 12:53 am
  2. Serge M said:

    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.

    July 6th, 2009 at 12:53 am
  3. Steven C said:

    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

    July 6th, 2009 at 12:53 am

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