Question 1

What is the formula for investment?

Accepted Answer

The compound investment growth formula is: Future Value = P × (1 + r/n)^(n×t) + PMT × [ ((1 + r/n)^(n×t) - 1) ÷ (r/n) ], where P is initial principal, r is annual rate of return, n is compounding frequency, t is time in years, and PMT is monthly contribution.

Question 2

How do I calculate investment income?

Accepted Answer

Investment income includes dividends, interest, and capital gains. To calculate annual dividend/interest income: multiply total portfolio value by annual yield percentage (e.g., $100,000 portfolio × 4% dividend yield = $4,000 per year or $333 per month).

Question 3

What does "investment" mean in mathematics?

Accepted Answer

In financial mathematics, an investment represents an initial capital principal commitment (P) that accumulates compound interest or capital gains over time (t) based on an annual rate of return (r) and compounding frequency (n).

Question 4

How much return on investment calculator?

Accepted Answer

Rate of Return (ROI) is calculated as: ROI % = [ (Current Investment Value - Initial Investment Cost) ÷ Initial Investment Cost ] × 100. For example, if an initial $10,000 investment grows to $15,000, your total ROI is 50%.

Question 5

How do you calculate investment?

Accepted Answer

To calculate an investment's future value: (1) Enter your initial principal lump sum. (2) Add recurring monthly contributions. (3) Set an estimated annual rate of return (e.g. 7% to 10% for stock index funds). (4) Select compounding frequency (monthly/annually) and time horizon.

Question 6

How much should I invest to get R10000 monthly?

Accepted Answer

To receive R10,000 monthly (R120,000 per year) in passive investment income: (1) At a conservative 4% Safe Withdrawal Rate rule: You need an investment capital of R3,000,000 (R3 Million). (2) At an 8% dividend yield: You need an investment capital of R1,500,000 (R1.5 Million).

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