How do you calculate investment?
- Posted:30th January, 2025
- Updated:30th January, 2025
When calculating investments, there are a few key factors to consider. The first is your principal amount the money you initially invested. Next, consider the expected rate of return.
You'll also need to factor in the investment period. Finally, consider fees associated with the investment, like commission or account charges, that will reduce your overall returns.
To calculate your total return, take the principal amount, multiply it by the expected rate of return as a decimal, multiply that by the number of years invested, and subtract any fees. This will estimate the total earnings you could get from your investment over time. Remember risk tolerance, time horizon, and asset allocation when making investment decisions.
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