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Author: dinkysue Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76882  
Subject: Re: How to calculate rate of return Date: 9/18/2008 11:41 PM
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Fools: I know I have seen the formula somewhere on the fool but I did a little research and could not find tonight.

I started 2008 with about $70K in our investment account. For 8 months we contributed $1500 each month. After 8 months we have $70K. So I have lost $12K but how does that translate into rate of return?

Can anyone help me out with the formula. It will be much appreciated.


Fletch, There was a time when I could use the formula but that time has passed. I have a financial calculator which says your rate of return for the 8 months was -25.17%. I think I did it right. If you lost $12,000 on $70,000 without contributions for a full year, it would be about -17% so I believe I hit the right buttons. Let's hope things improve in the not too distant future.

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