What was the annual return you earned on this investment?
Q. You purchase a high-yield, junk bond for $1,000 that pays $140 annually. After buying the bond, yields decline and you are able to reinvest the interest at only 9 percent. You reinvest all the interest payments. What was the annual return you earned on this investment How much will you have when the bond is retired after 12 years?
Asked by aunt.emme - Sun Nov 22 01:07:55 2009 - - 1 Answers - 0 Comments

A. Calculating the Rate of Return on Investments Let's say you invest $100 in stock, which is called your capital. One year later, your investment yields $110. What is the rate of return of your investment? We calculate it by using the following formula: ((Return - Capital) / Capital) 100% = Rate of Return Therefore, (($110 - $100) / $100) 100% = 10% Your rate of return is 10%. There are two ways to measure the rate of return on an investment. Average annual rate of return (also known as average annual arithmetic return) Compound rate of return (also called average annual geometric return) You initially invest $100. One year later, your investment grows to $200 in value. The year after that, the investment drops back to $100. The… [cont.]
Answered by Sumant - Sun Nov 22 03:11:48 2009

What is the typical annual cost to maintain a 30-35' sailboat?
Q. I have recently moved to the Lake Michigan shoreline and I have been lusting after sailboats. If I were to buy a 30-35' boat, what could I expect for typical annual maintenance costs? I have found that I can rent a slip seasonally for $2000-3000. What is typical for storage and launching? I have a lot of experience shrink wrapping boats, so I would not be opposed to storing it outside for the winter. Thanks for the help!
Asked by matt is all work - Sun Jul 13 11:22:15 2008 - - 3 Answers - 0 Comments

A. Well... I can certainly understand your lust... lol You certainly are at Heaven's gate of Boating Wonderland of the North... You should have a boat that size. Sounds like you have experience being around boats and Marinas, and the water... and that's good. Since you already know what your Summer-Winter slip & storage is going to be, your really almost there. Also sounds like you are capable of doing much of the work on the boat yourself... so that (or course) is good as it is a never ending job - especially if you keep your vessel in tip top - ship shape... Boat insurance is really not that much... I always have had mine covered with a rider on my homeowner - and it has always beat the prices from offers I get from Boat US,… [cont.]
Answered by Capt. John - Sun Jul 13 12:28:23 2008

How do I determine an annual percentage growth rate for an investment?
Q. I invested $500 on April 2nd, and as of the 30th, it had grown to $538...I know that is a 7% (or so) increase so far, but how do I figure out what the annual growth rate is, based on those numbers, and what formula would I use to do so? Thanks! My assumption was that (taking this as one month passed for simplicity)..a 7% growth rate in one month would be equivalent to an 84% growth rate in one year..
Asked by ambrosia2600 - Mon Apr 30 00:40:25 2007 - - 5 Answers - 0 Comments

A. IF your investment would continue to grow at 7.6% every 28 days (which is virtually impossible), here's how to figure out what that would be in a year: New amount divided by original amount raised to the power of (365 divided number of days so far), then subtract 1 and multiply by 100 to get percentage. In your example, that is: (538/500) ^ (365/28) = 2.5983 (2.5983 - 1) * 100 = 159.83% The reason it is not 84% is because for the next 28 days, you will have $538 growing at 7.6%, not just $500 like you had for the first 28 days. In other words, you're making profits on both your original investment plus your profits so far. That's called compounding and is a very powerful principle. That's why people that start to save for… [cont.]
Answered by Dave W - Mon Apr 30 08:19:43 2007