Calculate Annual Compounded Rate
The year-over-year growth rate of an investment over a specified period of time.
Please fix these errors:
Interpretation:
With a present value of $#InitialAmountInvested#, a future value of
$#TerminalValue#, and a time span of #TimeInYear# years, the compounded rate of
interest on the amount will be #CompoundedRate#. Time magnifies the value
created by interest.
An interest rate of #CompoundedRate# means that money is appreciating over time. So, if you invest today, that same amount will be worth more tomorrow. This is one of the main reasons for investing: by forgoing consumption today, you can invest money which will grow to a larger sum and increase your capacity to spend in the future.
" > With a present value of $#InitialAmountInvested#, future value of $#TerminalValue#, and time span of #TimeInYear# periods, the compounded rate of interest on the amount will be #CompoundedRate#. Time magnifies the value created by interest.An interest rate of #CompoundedRate# means that money is depreciating over time.
So, if you invest today, that same amount will be worth less tomorrow.
Situations like this rarely occur in the real world. A negative interest rate
means that by forgoing consumption today, you will end up with a lower amount
in the future.
OOPS!!!
The annual compounded rate is too small. This means that you either need to increase your terminal value, decrease the initial amount invested, or shorten your time frame.
Try again.
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