In finance Finance is the science of funds management. The general areas of finance are business finance, personal finance, and public finance. Finance includes saving money and often includes lending money. The field of finance deals with the concepts of time, money and risk and how they are interrelated. It also deals with how money is spent and budgeted, rate of return (ROR), also known as return on investment (ROI), rate of profit or sometimes just return, is the ratio of money Money is anything that is generally accepted as payment for goods and services and repayment of debts. The main functions of money are distinguished as: a medium of exchange, a unit of account, a store of value, and occasionally, a standard of deferred payment gained or lost (whether realized or unrealized) on an investment Investment or investing is a term with several closely-related meanings in business management, finance and economics, related to saving or deferring consumption. Investing is the active redirection of resources: from being consumed today, to creating benefits in the future; the use of assets to earn income or profit. An investment is a choice by relative to the amount of money invested. The amount of money gained or lost may be referred to as interest Interest is a fee paid on borrowed assets. It is the price paid for the use of borrowed money, or, money earned by deposited funds. Assets that are sometimes lent with interest include money, shares, consumer goods through hire purchase, major assets such as aircraft, and even entire factories in finance lease arrangements. The interest is, profit Accounting profit is the difference between price and the costs of bringing to market whatever it is that is accounted as an enterprise in terms of the component costs of delivered goods and/or services and any operating or other expenses/loss, gain/loss, or net income/loss. The money invested may be referred to as the asset In business and accounting, assets are economic resources owned by business or company. Anything tangible or intangible that one possesses, usually considered as applicable to the payment of one's debts is considered an asset. Simplistically stated, assets are things of value that can be readily converted into cash . The balance sheet of a firm, capital In economics, capital or capital goods or real capital refers to factors of production used to create goods or services that are not themselves significantly consumed in the production process. Capital goods may be acquired with money or financial capital. In finance and accounting, capital generally refers to financial wealth, especially that, principal Debt is that which is owed; usually referencing assets owed, but the term can also cover moral obligations and other interactions not requiring money. In the case of assets, debt is a means of using future purchasing power in the present before a summation has been earned. Some companies and corporations use debt as a part of their overall, or the cost basis Basis , as used in United States tax law, is the original cost of property, adjusted for factors such as depreciation. When property is sold, the taxpayer pays/(saves) taxes on a capital gain/(loss) that equals the amount realized on the sale minus the sold property's basis of the investment. ROI is usually expressed as a percentage rather than a fraction.
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Q. Basically for my finance project we had about $500,000 of fake money to invest Ive been keeping track of my portfolio for the past two months below is a data of my balance for the first four days of my investment period my question is how do i calculate my daily Rate of return I understand the formula is P1-P0 / (P0) but does P0 stay constant at 500,000 since its my initial investment or does it change daily depending on my new balance?? Date (balance) initial investment 500,000 9/18/2007518620.8 9/19/2007509737.53 9/20/2007501256.52 9/21/2007521507.73 9/24/2007520368.71 9/25/2007515269.73
Asked by Ms Behaved - Sun Nov 25 23:22:05 2007 - - 3 Answers - 0 Comments
A. Adding to first post. If you want to calculate the daily return for each day you have to use the previous days balance as P0 for each day calculated. example to calculate 1 day return for 9/21/2007 521507.73 - 501256.52 / 501256.52
Answered by don_sv_az - Mon Nov 26 00:30:15 2007
