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?© BrainMass Inc. brainmass.com June 4, 2020, 2:46 am ad1c9bdddf
Notice that 1/1/17 is the same as 12/31/16 for return purchases (new years ...
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.