Calculating the Rate of Return

Internal Rate of Return
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Bernard Lim, Malaysia

Calculating the Rate of Return

A leading broker has advertised money multiplier certificates that will triple your money in 9 years. If you buy one for $333.33 today, it will pay you $1000 at the end of nine years. What rate of return will you earn on these money multiplier certificates?

  Craig Sanders, USA
 

IRR Calculation in Excel

The IRR = 12.979% using a start date of 1/1/10 in my example and ending 12/31/18. I use the formula in Microsoft Excel of =XIRR.

  Rachid LANGAR
Business Consultant, Qatar
 

Another Easy Way to calculate IRR

The easiest is to use your own scientific calculator:
[3^(1/9)-1] x 100 = 12.983%
Hope this is useful.

 

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