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how do you calculate compound rate of return. The most common way to calculate investment returns is to use a time-weighted average. A P 1 rnnt The compound interest formula solves for the future value of your investment A.
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The algorithm behind this rate of return calculator uses the compound annual growth rate formula as it is explained below in 3 steps. However this does not mean that the investment actually appreciated by 10 during each of the five years. 1464 x 10 161051.
To calculate the CAGR of an investment.
1331 x 10 146410. Divide the value of an investment at the end of the period by its value at the beginning of that period. Calculate compound interest on an investment or savings. The compound annual growth rate CAGR shows the rate of return of an investment over a certain period of time expressed in annual percentage terms.
