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URL:  http://boards.fool.com/gamadrid-wrote-ltlti-just-received-my-401k-10097180.aspx

Subject:  Re: Analyzing 401(k) statement Date:  2/3/1998  5:55 PM
Author:  rbednarski Number:  1616 of 76080

gamadrid wrote:
<<I just received my 401(k) statement today, and I am trying to analyze my returns>>

A standard financial formula for estimating the rate of return is:

i=2I/(A+B-I)

where:

A is the market value at the beginning of the period

B is the market value at the end of the period, and

I is the total investment return in dollars.

If the only external cashflows during the year were contributions of C then you can compute I with the following formula:

I=B-A-C

If, in addition to contributiosni n the amount of C there were disbursements in the amount of D you would compute I as:

I=B-A-C+D

Hope this helps.

rich
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