Trying to get the formula to calculate average percentage yield per year:
This is a stock I purchased for $11.61, now the value is $21.21.
Current value is $21.21
initial investment is $11.61
Years invested is 9
I know the average rate of return(6.924%) for this example using the FV(rate, nper, pmt, pv) formula to give me the future value of 21.21
FV(.06924,9,,11.61) = 21.21
But I want to find that average yield using the same criteria:
FV = $21.21
Initial Investment = $11.61
Term = 9 yr
I have tried i = (PV/FV)^1/9-1 however I get a rate of .7970, instead of getting the rate of .06924.
Is there an err in the formula or should I use a different formula?
Frank
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