Question

how do you calculate the rate of return

Answer 1

Hey Mate

your answer is ---

Firstly , It is necessary to know that what is rate of return .

◆ The rate of return is the amount you receive after the cost of an initial investment .

• It is calculated in form of percentage, when percentage is positive, which is considered as a gain or profit and when percentage is negative , it is considered as a loss.

◆ We need two major number to calculate the rate of return

• Current value: the current value of the item.

• Original value: the price at which you purchased the item.

Now, the formula is ---


● Rate of return =
$\frac{current \: value \: - \: original \: value}{original \: value} \times 100$

Let, considered a example suppose You buy a house in 2004 at rate of ₹ 5000 , Now at present time ( in2018) your house rate is ₹ 10,000 and anyone buy your house at ₹ 10,000 . find rate of return

So, according to given example

current value = ₹ 10,000

original value = ₹ 5,000

so, according to formula

rate of return = 10000-5000/5000×100

=> rate of return = 1 × 100

=> rate of return = 100%

percentage are positive. So, there is profit

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【 Hope it helps you 】
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Answer 2

☆ Hey friend!!! ☆

here is your answer ☞
→_→→_→→_→→_→→_→

The rate of return formula =>
________

The rate of return formula is easy to use tools ..there are two major numbers needed to calculate the rate of return :

☞current value => the current value of the items .

☞Original value => the price at which you purchased the items

Then,

Apply these value in the rate of return formula

Rate of return = {(current value - Original value)×100}/Original value

[Note ☞ (1)the outcome is always reflected as a percentage(%), so the formula Requairs you to multiply by 100 to gate the percentage .
(2) if this percentage is a positive number then you have a profit .
(3) if the percentage is a nagetive number, then
you have a loss on investment .]

hope it will help you ☺☺☺

Devil_king ▄︻̷̿┻̿═━一