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  2. Rate of return - Wikipedia

    en.wikipedia.org/wiki/Rate_of_return

    To calculate the capital gain for US income tax purposes, include the reinvested dividends in the cost basis. The investor received a total of $4.06 in dividends over the year, all of which were reinvested, so the cost basis increased by $4.06. Cost Basis = $100 + $4.06 = $104.06; Capital gain/loss = $103.02 − $104.06 = -$1.04 (a capital loss)

  3. How To Calculate Return on Investment (ROI) - AOL

    www.aol.com/finance/calculate-return-investment...

    The total cost of your investment in the car is $20,000. If you then sell the car for $50,000, your ROI is 150%. Cost of investment = $10,000 purchase price + $7,500 repairs + $2,500 storage = $20,000

  4. Return on investment - Wikipedia

    en.wikipedia.org/wiki/Return_on_investment

    Return on investment (%) = (current value of investment if not exited yet or sold price of investment if exited + income from investment − initial investment and other expenses) / initial investment and other expenses x 100%. Example with a share of stock: You bought 1 share of stock for US$100 and paid a buying commission of US$5.

  5. Investment (macroeconomics) - Wikipedia

    en.wikipedia.org/wiki/Investment_(macroeconomics)

    In macroeconomics, investment "consists of the additions to the nation's capital stock of buildings, equipment, software, and inventories during a year" [1] or, alternatively, investment spending — "spending on productive physical capital such as machinery and construction of buildings, and on changes to inventories — as part of total spending" on goods and services per year.

  6. How Do I Calculate Total Return On Investment? - AOL

    www.aol.com/finance/calculate-total-return...

    Investing is frequently filled with complicated jargon that can make it difficult to understand how your investments are actually performing. The Capital Gains Yield is one of these terms. While ...

  7. Net present value - Wikipedia

    en.wikipedia.org/wiki/Net_present_value

    The investment horizon of all possible investment projects considered are equally acceptable to the investor (e.g. a 3-year project is not necessarily preferable vs. a 20-year project.) The 10% discount rate is the appropriate (and stable) rate to discount the expected cash flows from each project being considered.

  8. Profitability index - Wikipedia

    en.wikipedia.org/wiki/Profitability_index

    Profitability index (PI), also known as profit investment ratio (PIR) and value investment ratio (VIR), is the ratio of payoff to investment of a proposed project.It is a useful tool for ranking projects because it allows you to quantify the amount of value created per unit of investment.

  9. What is compound interest? How compounding works to turn time ...

    www.aol.com/finance/what-is-compound-interest...

    It would take you 60 months (or five years) of $266.67 monthly payments to pay off the balance, and you’d end up paying $5,823.55 in interest over that time — about 37% of your total payments.

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