Somewhere in your campaign's databases exists every number you need to
calculate exact return - on - investment.
Not exact matches
For small values of inflation, simply subtracting the inflation rate from the nominal
return gives a reasonably accurate approximation of the real
return, but for larger values, the
exact formula should be used.4 For our example the formula is 2.11 / 1.26 - 1 = 1.67 — 1 = 0.67 = 67 % (2.11 is the nominal, investment growth factor
calculated as $ 21,090 / $ 10,000, and 1.26 is the inflation factor derived in the previous paragraph).
If you need more help determining if you are eligible for the Earned Income Tax Credit and figuring the
exact amount of your credit, you should just begin preparing a tax
return using efile.com and we will
calculate your EITC credit amount for you.
The
exact amount of the payroll tax credit for the year will be
calculated on the filers» tax
returns.
Here are what we would have
calculated as (our estimate of the) Withdrawal Rates in 1929, 1937, 1965 and 1966 using this method and assuming that we could have predicted the
exact annualized
return (i.e.,
return0) that occurred 14 years later.
When you prepare your tax
return on efile.com, we will
calculate the
exact amount of your credit for you.
But if you want to know the
exact formula for
calculating real rate of
return then please check out the «Formula» box above.