Localfund.com - All about Fund and Investment
*Home>>>Return Investment

If an investment returns 15% in 5 years, what is the annual rate of return?


If an investment returns 15% in 5 years, what is the annual rate of return?

If it states 15% in 5 years this is a fixed term investment meaning that if you withdraw your funds from this investment before that period you likely to get nothing. If this is some sort of trick question on interest then there is no way I could tell you as the interest would be cumulative i.e you get interest on interest already paid and the yearly rates may change over the course of the investment. For tax purposes the income from an investment would probably not have to be declared year on year until it matures anyway as you could not access it. SEEK SPECIALIST ADVICE

Depends on the frequency of the compounding period (monthly, quarterly, annually...), and also on other assumptions. I would be more concerned about the return of the principal sum, and its safety.

I could have given u close answer, but I am not at work. It should be close to 2.85% annual return assuming frequency every three months.

Very poor investment.

Crappy.

Your annual rate of return would be 2.83%.

If you had $100 and 5 years later it was worth $115, the you received 15% total return. Now let's check my annual rate of return answer with the same assumption:
Year 1 balance: $102.83 Formula: 100*(1+.0283)
Year 2 balance: $105.75 Formula: 102.83*(1+.0283)
Year 3 balance: $108.74 Formula: 105.75*(1+.0283)
Year 4 balance: $111.83 Formula: 108.74*(1+.0283)
Year 5 balance: $115 Formula: 111.83*(1+.0283)

The formula to figure out your annual rate of return is:
(1+Total Return)^(1/# of years)

Tags
  Startup Capital   Sector Fund   Seed Money   Seed Capital   Return Investment   Real Money   Real Estate Investment   Raise Capital
Related information
  • How to buy Amanah Saham National (ASNB)?MayBank RHBank POSMalay?it is no investment risk and return 6-7% year?

    There is no such thing as a NO RISK investment, they do not exist. But if you are looking to invest in foreign markets I recommend talking to your broker. If you do not have one, contact Fide...

  • If investment return in dollars to make a decision regarding a return adequacy, what do you need to know?

    You need to know the total investment costs and risks, your marginal tax bracket, and the inflation rate against the dollar.

    ...
  • What kind of Return on Investment do you get flipping foreclosed homes?

    I usually aim at obtaining a 30% ROI. The actual results I get are 20 to 40% ROI.

    ...
  • What is return in investment for non porfit organisations?

    If it's non-profit, there should be NO return on investment. Non-profits aren't supposed to be a money making operation so they don't have profits.

    ...
  • What is Return of Investment?

    Actually, what was described above was return ON investment. Return of investment is return of principal. It is usually used in the context of depreciation or declining balance loans.

    ...
  • How does Adobe's return on investment compare to the industry's return on investment?

    reverse the PE multiples of both and you will get the percentages for the return on investment.

    ...
  • What is the gaurantee of return of investment.?

    If you expect a guaranteed return you can invest in bank deposits. government bonds . The returns are limited but guaranteed. But you have to take some risk and optimise your returns in order to p...

  • Do condoms offer the highest return on investment of any product?

    condoms reduce the chance of liablities. condominimums do not offer the highest ROI of property

    ...
  •  

    Categories--Copyright/IP Policy--Contact Webmaster