The return on this security is 180% and is calculauted as (2.8lac - 1lac)/ 1 lac.

The annualized return is 11% and is calculated as ((2.8lac/1lac)^(365/3650))-1

the 3650 is for the 10 years - 365 days x 10 years.

May 02 2012 01:01 PM
The annualized return is 11% and is calculated as ((2.8lac/1lac)^(365/3650))-1

the 3650 is for the 10 years - 365 days x 10 years.

Hi. Apart from the formula, you can use the in-built function "RATE" in the Excel. Feed the values as Nper = 10, Pmt = 0, PV = -100000, FV = 280000 and type = 0 or blank. You'll get 10.84% or 11%.

Sep 04 2012 02:38 PM