[mcdonaldwpm]

I’m trying to calculate my annual rate of return on an investment where I added additional money during the year. For example, let’s say at the beginning of the year my account had $1000. On the last day of the year the account balance was $1500. However, during the year I added $200 to the account. What is my rate of return and how is it calculated.

I understand in the above scenario that I had I not contributed the extra $200, my return would have been 50%. What confuses me is how to make the calculations when extra monies are added.

Thanks

[warwar]

What is the formula to determine the interest rate or yield on an investment? I thinks its:

P X R X T=interest earned I want the formula to reflect the rate of return.

Thank you

[talbotton]

Pits answer