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how to calculate compound interest return. How to Calculate Compound Average Rate of Return CAGR from Day Trading The most common way to calculate investment returns is to use a time-weighted average. So 4 would be 004 divided by n the number of times your.
N number of compounding periods per unit. Initial InvestmentInitial InvestmentAmount of money that you have available to invest initially. Interest rate The annual interest rate for your investment.
To calculate the compound average return we first add 1 to each annual return which gives us 115 09 and 105 respectively.
The P in the formula above stands for your principal thats the amount that you start with. Interest rate The annual interest rate for your investment. I Interest Amount. N number of compounding periods per unit.