All Questions
Tagged with compound-interest investing
30
questions
0
votes
0
answers
34
views
How to evaluate the net profit rate for a pension scheme?
I am not a finance (cse background) guy but have some basic minimal knowledge about the inflation rate & interest rate of a country, and the net profit rate for an investment. As far as I ...
- 101
0
votes
1
answer
209
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Monthly Rate vs Continuously Compounded Rate
A bank offers two alternative interest schedules for a savings account of $100,000 locked in for 3 years. Which alternative should you choose?
(a) a monthly rate of 1%
(b) an annually, continuously ...
- 111
1
vote
2
answers
89
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For mutual funds, does average annual return mean compounded annually or continually or daily?
Vanguard's Portfolio Allocations page (1926-2019) shows 9.21% Average annual return for 70% Equity and 30% Fixed income.
Does this mean 9.21% compounded annually?
GOAL...
If at age full retirement age ...
- 676
-2
votes
2
answers
305
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Handing multiple people pooling money into a crypto that compounds
This might be an odd one, but I’m looking for some advice. I have a few people wanting to pool money together into a crypto that compounds.
I’m looking for a good way to record the percentage that ...
- 113
1
vote
2
answers
169
views
calculating stock investment return
Please help. I am stuck. I am still pretty new to investing, so please be nice and a simple explanation is much appreciated. I want to calculate the capital gains (NO DIVIDEND) annual return of a ...
2
votes
1
answer
2k
views
Google Sheet formula for annualized returns - doubts
I'm trying to setup a calculator in google sheets where I calculate the future value of investing for example:
a principal of 10.000
into which I deposit 1.000 every month
the investment doesn't give ...
- 23
0
votes
1
answer
146
views
Why articles give the stock market as an example for compound interest?
I have read a dozen or so books, including The Intelligent Investor, but I still like to read random articles about investing.
I keep finding articles like this one where they give the stock market as ...
- 665
1
vote
2
answers
150
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Is there a concept similar to "continuous compounding" but related to dollar cost averaging when buying (e.g.) shares or bitcoins?
I know that dollar cost averaging (DCA) is "drip feeding" a total amount to be invested over regular intervals like daily, weekly or monthly, so that each share purchase (or whatever the ...
- 576
0
votes
1
answer
134
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Is it good to invest in mutual fund during the down time in market?
Say there is a mutual fund and its annual return in the past 3 years i.e. 2017, 2018, 2019 were -10%, +20%, and -10% respectively.
A and B invest $100 in this fund at different time points. A ...
2
votes
2
answers
123
views
Find ending balance given return rate and amount added each year
If I have an investment that grows 10% per year, and every year I add an amount, is there a formula that can be used to find my ending balance after n years?
The following demonstrates this:
year 0: ...
- 174
3
votes
4
answers
285
views
What is an appropriate metric measure average annualized rate of return for an average investor?
Let us say an investor invests $X per year for N years. Let us say the final portfolio value is $Y. In this scenario, how should I measure a metric that quantifies "average annualized return"?
I ...
- 51
1
vote
3
answers
1k
views
Does compounding frequency have any bearing on the return on investment?
If I take 100 dollars and put it into a savings account that pays me 5% annual interest which compounds monthly. At the end of the year I will have $105.12
If I take the same 100 dollars and invest ...
- 11
2
votes
4
answers
331
views
Time value of money confusion [duplicate]
I am new to the stock market and currently trying to just get a basic understanding of the stock markets using online sources (investopedia).
I came across this sentence when I was reading on a ...
- 334
1
vote
3
answers
469
views
Long Term Stock Investment and Compounding
I have a query that's been bugging me. I have been investing in the UK stock market + funds for around a year now.
Current Investments
- Retirement Fund
- FTSE index Fund
- Managed Accumulation ...
- 11
5
votes
4
answers
2k
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Do pension pots get interest? [closed]
Pension pot is the money, the employee and sometimes the employer and the government pay that gets accumulated into pension fund.
But my question is, that this pension fund is basically a bank ...
- 153