Understanding ROI
(Return On Investment)
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Say you invested $10,000 and at the end of five years it was worth $15,000.
That's a ten percent annual return, right? $1,000 a year for five years?
Um . . . no. The correct answer would be 8.45%
For a quick Finance 101 lesson to see how it works, download this.
Questions? Contact us.
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Thinking it through . . . .
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