1060 X 6 6360. PV FV e-rt where. You have 100 today and have been offered a 6-month continuously.
The reason for the difference is the compounding of interest.
Annualized Total Return 112 80 11513 1 00100 x 100 100 In the year the investment lost 20 you have 80 of the balance from the end of the first year which is why you multiply by 80. Calculate rate of interest in decimal solve for r r nAP 1nt - 1. Texas Instruments BA II Plus Financial Calculator Product Specifications. Plugging the same numbers into the formula for calculating annualized total return looks like this.