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Calculating interest on investments

A Fin24 user wants to know how to calculate the interest she has earned on investments. She writes:

What formula do I use to calculate the interest earned on my investments over the past 12 months?

Daryl Ducasse of Merkurius Capital Solutions responds:

The simplest formula to use is to subtract the original (principal) investment amount from the year-end (terminal) investment value.

For example: Terminal = R110,000; principal = R100,000; difference = R10,000.

The total "interest" earned, therefore, would be R10 000. The return calculation is 10 000/100 000 = 0.10 or 10.00%.

 - Fin24

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Disclaimer: Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers.

Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.


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