![]() Years needed to double your investment = 72 / compound interest rate (per year) 10. The same formula can also be used to figure out how long it could take you to double your debt – steer carefully! Simply, how long will it take to double what you put into it? The rule of 72 is a useful trick that tells you how many years your investment will need to double in value at a specific annual return rate. Purchase price variation = (Current price – purchase price) / purchase price 9. How to Calculate the Variation of InvestmentĬalculating the variation of your investment tells you what’s happened to your investment over a period of time: Has it gone up, or has it tanked?Įxpressed as a decimal ratio, the result tells you how much more (or less) your purchase is worth. Here’s a simple way to figure out your business’s net income: Use this formula to calculate when you’ll finally be breaking even – or to find out if you already have:īreak-even point (in dollars) = Fixed expenses / Gross profit margin (in percentage) 7. Knowing when you’re breaking even is an essential part of a successful business venture. Price to Earnings Ratio = Price per share / Earnings per shareįor example, Microsoft Corporation on the 20th of July 2016 traded at $56, 52 per share, and the EPS was listed at $0.69 according to this piece on News is Money. ![]() This can tell you if stocks are over- or undervalued. Here’s a formula that’s useful if you’re watching stocks or companies – use it to calculate the relationship between a company’s share prices and per-share earnings. T = How long the money is borrowed or invested for (in years) 5. N = The number of times the interest is compounded (per year) R = The annual interest rate (as a decimal) How to Calculate Compound InterestĬompound interest refers to calculating the compounded interest, not just the interest gained on the principal invested or borrowed amount. T = How long the money is borrowed or invested for (in years) 4. R = rate of interest charged per year (as a decimal number) It’s also referred to as principal interest because the interest accrued is based only on the principal amount. Simple interest applies when you need to find out the interest being charged on a loan. Remember: You might not be starting there, but neither did he.Īssets – Debts = Net worth 3. Your personal net worth, simply, is what you own minus what you owe.Īgain, you’re looking for a positive balance here.Īccording to the Forbes Billionaires List, Bill Gates currently tops it at the time of this writing with a net worth of $75 billion. ![]() It’s down to how much you’re bringing in and how much you’re spending – if you’re carrying a negative balance at the end of this formula, you need to re-evaluate your finances. Swagbucks: Get paid to watch videos, shop online, take surveys and more. IPsos iSay:: If you have to only sign up for one paid survey site, go with Ipsos (high paying survyes)! Join iPsos Now! Plus get paid within 48 hours by PayPal! Join Branded Surveys Join Now!īranded Surveys: Get $1 instantly just for joining for free. They also pay up to $50/hr for mystery shopping. KashKick: Get paid directly into your PayPal for watching videos, surfing, shopping and more.
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