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    Assume that on 1/1/12 you purchased an investment for $3000.

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    Assume that on 1/1/12 you purchased an investment for $3000. The investment pays $200 on 12/31 of every year that the security is held. On 1/1/17 you sell the investment for $3500. What is the rate of return?

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    https://brainmass.com/business/accounting/accounting-problem-rate-return-investment-478614

    Solution Preview

    Notice that 1/1/17 is the same as 12/31/16 for return purchases (new years ...

    Solution Summary

    Notice that 1/1/17 is the same as 12/31/16 for return purchases (new years eve versus new years day). This is template in Excel (attached) which you can now use to find IRR (annualized rate of return) for other similar problems.

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