﻿ Interest Rate Earned

Interest Rate Earned

# Example #1

An account grew from \$14,000 to \$15,000 during the last quarter. Monthly deposits of \$250 were made at the end of each month. What was the rate of return during this period?

## Data Entry

Use the following values for the prompts:

## Value

Calculation Type

Accumulation

Calculate

Interest Rate

Current Account Value

\$14,000

Number of Years

0.25

Deposit Amount

\$250

Type of Deposits

Level Deposits

Deposits per Year

12

End of Period

Projected Value

\$15,000

## Result

The Calculated Interest Rate shows 7.0774%.

# Example #2

For 3 years your client has been making \$250 monthly deposits. The account balance is now \$10,500. What has been the client's average annual rate of return?

## Data Entry

Use the following values for the prompts:

## Value

Calculation Type

Accumulation

Calculate

Interest Rate

Current Account Value

\$0

Type of Deposits

Level Deposits

# of Deposits/Year

12

Amount of Each Deposit

\$250

End of Period

Interest Rate

Do not enter value

# of Years

3

Projected Value

\$10,500

## Result

The Calculated Interest Rate shows 10.2604%.