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Q: What is the nominal rate of return per year on an investment that doubles in value every 6 months?
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What is the nominal annual rate of return?

The nominal annual rate of return is calculated from the effective interest rate. It is typically a slightly lower percentage, and gives investors an idea of what their investment may return.


Are there any circumstances under which an investor might be more concerned about the nominal return on an investment than the real return?

circumstances: a. when investors calculate the tax on returns, they use nominal returns,because tax on nominal returns is less than real returns in order to adjust profits.


How do you Calculate a Return on an Investment?

The return on investment formula:ROI=(Gain from Investment - Cost of Investment)/Cost of Investment.


Can TVM be used to evaluate the real return or just the nominal return?

TVM, or Time Value of Money can certainly be used to calculate a real return. The only difference between a nominal return and a real return is inflation, so simply discount your future cash flows by anticipated inflation and you have a real return. In simpler terms assuming inflation is steady you could simply deduct inflation from your nominal return. For example a nominal 7% return with 3% inflation could be desribed as a 4% real return.


How is ROI or return on investment calculated?

Return on investment is calculated by subtracting investment capital from the return, taking into account inflation, taxation and the time frame involved.


Return On Investment in fmcg?

Return on investment is the amount that you get back for investing in something. The formula is ROI=(Profit *100)/(Investment * number of years.)


What factors affect the rate of return of an investment at maturity?

What factors affect the rate of return of an investment at maturity?


Return on investment and safety of investment?

Return on investment is the amount of profit on the invested money after deducting taxes, safety of investment is the risk factor involved in the investment. Such as risk is high safety of investment is less.


Is return of investment an income acct?

Yes the amount would be a taxable income amount after your return of investment amounts exceed your cost basis in the investment.


A risk of money to get something in return is called?

An investment.


When a corporation weighs its return on investment for initiating a new project against the minimum standard investment return it has set before it the minimum standard investment return is referred t?

Hurdle rate


Why is investment trading less expensive online?

Investment trading is less expensive because the online brokers are not expensive as compared to the services they provide in return. They charge nominal annual fees for online trading account. But in return, they provide you better personalized services. They provide you with an online trading platform so that you can conveniently trade from the ease of the home. They also provide you the facility to maintain your portfolio online. They also provide you with analysis reports about the stocks you own. Getting so many services for a nominal annual fees is anytime beneficial.