What is the formula for the annual rate of return quizlet
On the lower-risk end of the spectrum, savings and money market accounts can offer fixed rates of return. Fixed rate means that the rate will not change over time.The opposite of that is a Formula and example for calculating annual rate of return on other investments like property. Formula and example for calculating annual rate of return on other investments like property Effective Annual Rate (I) is the effective annual interest rate, or "effective rate". In the formula, i = I/100. Effective Annual Rate Calculation: Suppose you are comparing loans from 2 different financial institutions. The first offers you 7.24% compounded quarterly while the second offers you a lower rate of 7.18% but compounds interest weekly.