Archive for December, 2010

Calculating Investment Growth Every Year

Saturday, December 25th, 2010

In these times of an unstable economy system, people are desperately looking for rewarding (yet reliable) ways to invest a part of their savings. With the endless options to invest your money, one is sure to get confused about the decision. Also, there is a good amount of risk of falling into the wrong hands. Also, having a good knowledge about the ongoing financial trends is useful to find the current and future growth prospects of the various available options. Also, once thorough with the math involved, you can know how much can your investment fetch you on an annual scale.

First, calculate the amount of total profit which your investment will fetch you. Divide this profit by the initial investment amount to find the growth rate. Add 1 to it and raise it to the power number representing the number of terms per year. Deduct 1 and multiply by 100 to get the annual growth rate.