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Annual rate of return

   Also found in: Acronyms 0.02 sec.
Annual rate of return
There are many ways of calculating the annual rate of return. If the rate of return is calculated on a monthly basis, we sometimes multiply this by 12 to express an annual rate of return. This is often called the annual percentage rate (APR). The annual percentage yield (APY) includes the effect of compounding interest.


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Over the past five years, the pension fund has thrown off an average annual rate of return of 3.
The 2005 Ariel/Schwab Black Investor Survey found that African Americans place a substantially greater financial value on their homes when it comes to retirement planning, even though employer-sponsored retirement plans could potentially deliver a higher annual rate of return over the long term.
The Fifth Circuit determined the Tax Court had used an inconsistent assumption--namely, that a hypothetical purchaser would engage in long-range timber production even though the timber property's annual rate of return was substantially lower than the return most investors would require.
 
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