Calculating the Rate of Return

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Calculating the Rate of Return
Bernard Lim
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?
 

 
IRR Calculation in Excel
Craig Sanders, Member
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.
 

 
Another Easy Way to calculate IRR
Rachid LANGAR, Member
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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