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The formula for rate of return
A rate of return is the percentage difference between something's present value and its original value. This formula is simple: the current or present value minus the original value divided by the starting value, multiplied by 100. The rate of return is expressed as a percentage.
Rate of return=[Initial value(Current value−Initial value)] x 100
This fundamental rate of return (ROI) is also known as the basic growth rate or return on investment (ROI). A real rate of return may also be described as the net amount of discounted cash flows (DCF) earned on an investment after taking into account inflation and time value of money.
Rate of return=[Initial value(Current value−Initial value)] x 100
This fundamental rate of return (ROI) is also known as the basic growth rate or return on investment (ROI). A real rate of return may also be described as the net amount of discounted cash flows (DCF) earned on an investment after taking into account inflation and time value of money.
Jan 25, 2022 07:08