How can I calculate an accurate Annual Percentage Rate with multiple deposits?

For example: On Jan 1, an financier deposits $100,000 to an account. Two months after upon Mar 1, the same financier deposits an one more $30,000. On Apr thirty of the same year, the financier is since the check for $150,000 which repays his sum investment (and includes $20,000 profit). Can any one uncover me how I would work out an Annual Percentage Rate? THANKS!!!!

Tagged as: Accurate, annual, Calculate, Deposits, multiple, percentage, Rate

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zman492 September 25, 2010 at 8:51 pm: It is a fairly simple calculation.

$100,000 x 4 months = $400,000 dollar months

$30,000 x 2 months = $60,000 dollar months

Total = $460,000 dollar months

divide by 4 months and you get the average amount in the account was $115,000

The interest rate for four months months = ($20,000 x 100) / $115,000 = 17.39%

To calculate the annual percentage rate you have to decide if you want to compound or not.

Without compounding the annual rate = 17.39% x (12/4) = 52.17%

With compounding the annual rate = (((1 + (17.39 / 100)) ^ (12/4) – 1) x 100 = 61.77%

HOW CAN I CALCULATE AN ACCURATE ANNUAL PERCENTAGE RATE WITH MULTIPLE DEPOSITS?

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