Simple interest

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Guest

I invested 100$ 35 days back and got 122.75$ today, I want to calculte the
interest received
 
(122.75*(365/35))/100-1=11.80107143=1180.11%
Please, let me know the next such investment opportunity!
Regards,
Stefi



„Gorthi†ezt írta:
 
Which function do i use in the Financial calculations? This mathematical way
is ok.
Is it the only way?
 
Sorry, of course you are right. Next time I'll check my post more carefully.
237.25% interest is still not bad!

Stefi

„David Biddulph†ezt írta:
 
Is there no simple function in the financial calculations rather than doing
all this math?
 
This is a straight percentage problem. The simple interest rate is
(122.75-100.00)/100.00 = 22.75%

If you want to annualize this rate, use the =Rate function.
 
All financial functions use compound interest. You wanted simple interest. So
the answer is, no, there is no financial function for your calculation.
 
Regardless of the result, the formula does not properly annualize the rate of
return. Your formula assumes you earn $22.75 every 35 days. However, if you
reinvested the $122.75 for 35 days at the same rate, you would earn $27.93.

The proper way to annualize the rate of return is to use the future value
function, as in:

=fv(22.75%,365/35,0,-1)-1 or 747.94%
 
That would be fine if the investment had a compounding interval of 35 days,
but that would be an unusual interval; in many cases the compounding
interval is annual or biannual.
[But, as you said in another post, the OP asked for simple interest, not
compound interest.]
 
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