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Old 11-01-2019, 02:12 PM
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Default How to calculate annual return

Lets say you have $100 in stocks. You are contributing $10 an month. After a year you realized gains of $50 excluding contributions.

Do you compare the $50 to the average over the year of (depending how you calculate it) say $150?
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Old 11-01-2019, 02:15 PM
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You actuary it up bro:

100 x (1+i) + 10 X (1+i)^(11/12)+... = 150

Solve for i

ETA, = 100 + 120 + 50
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Old 11-01-2019, 02:17 PM
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Originally Posted by fdsafdsa View Post
You actuary it up bro:

100 x (1+i) + 10 X (1+i)^(11/12)+... = 150

Solve for i
This. Computers make is pretty easy.

If you want a tractable approximation, the modified Dietz method is typically reliable and accurate.
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