rate formula

[scott]

If I invest $200,000
And end up with $250,000
I've recieved a 25% rate of return(This is easy on
calculator)

If I know the beginning dollar value, and the ending
dollar value, what formula could I use to calculate this
25% ROR?

Thanks a lot. Scott

 

[scott]

-----Original Message-----
If I invest $200,000
And end up with $250,000
I've recieved a 25% rate of return(This is easy on
calculator)

If I know the beginning dollar value, and the ending
dollar value, what formula could I use to calculate this
25% ROR?

Thanks a lot. Scott
.
I just ended up dividing the equity by the original

investment. I think this should be OK. Thanks

 

[Tom Ogilvy]

=(250000-200000)/200000

=(end-start)/start

format as %

will provide the percentage you describe.



Regards,
Tom Ogilvy

 

[Phil]

Scott,

rate=(250-200)/200
obviously you can reference cells for initial investment
and ending value. If your dealing with multi year
investments and want the annual return you could divide
the results of rate by the number of periods
annualrate= ((250-200)/200)/(# of years)

 

[Dana DeLouis]

For something "simple" like your example, perhaps the following idea...

=IRR({-200000,250000})

returns 25%

(Not array entered)