What return percentage per year would this be?
The way I know of:
153,000,000 subtract 13,600=152,986,400. 152,986,400 divided by 13,600=11,249. 11,249*100=1,124,900.
1,124,900 divided by 8=140,612.5% per year.
Right or wrong?
If right, why do so many people on various sites calculate it as 220% annually? Which is right? How could someone come up with 220%?
>>7963540
Also, why does 13,600 times 2.20 for eight years come out to 7,463,118 on a calculator?
>>7963549
Bump
>>7963540
I would do it:
153000000-13600=152986400
152986400/13600=11249
(1+p)^8=11249
(1+p)=3.209
p=2.209
which is approx. 220%
>>7963540
220% is the annualized rate of return with reinvestment. So if you start with 13600 and invest in something that has a 220% rate of return at the end of the year, and then keep reinvesting what you get each year for 8 years, you will have 153000000
>>7964556
P = percentage
>>7964556
It's simple. Let x be the amount invested and y be the amount this investment grows to at the end of the year.
The annual rate of return is r = (y-x)/x
y = rx+x = x(r+1)
So if we start with investment x, the amount this turns to after the first year is
y(1) = x(r+1)
Now we reinvestment, meaning x(r+1) becomes the new 'x'
y(2) = (x(r+1))(r+1) = x(r+1)^2
...
y(n) = x(r+1)^n
r = (y/x)^(1/n) - 1
Now we plug in our values and solve
r = (153000000/13600)^(1/8) ~ 2.20
>>7964590
r = (153000000/13600)^(1/8)-1 ~ 2.21
>>7964625
I don't know what you plugged it into on your calculator...
>>7964631
13,600 * 2.20 ^ (X with the little Y in the upper right) for 8 comes out to 7,463,118.
>>7964870
I still don't understand what you're trying to do. What are X and Y? The correct way to calculate the gross amount is
13,600(2.20+1)^8 = 14,953,358
>>7964870
you need to add 1 to the rate of return
think of it this way
10% of 100 is 10
But if your 100 grows at 10%
You will have 100 + 100*0.1
= 100(1+0.1)
