Are my figures about right

newcastleneil

I have two NSANDI index linked bonds.I ve been trying to work out what the growth rate is on them
1 .£5000 held for I year now worth £5357 .I work this out as 7.14 %growth

2. £10000 held for 42 months now worth £11154 I work this out as 4.61% growth
Are my calculations about right

Thanks for any replies:j

whu

The first one is correct- the second one is 11.54% over the period as far as I can see

newcastleneil

Thanks whu .I had that 11.54% too so I divided by 42 times it by 12 and got a yearly growth of 4.61%

atypical

newcastleneil wrote: »

Thanks whu .I had that 11.54% too so I divided by 42 times it by 12 and got a yearly growth of 4.61%

11.54/42*12 = 3.30% not 4.61%. That's a quick and dirty way of doing it but ignores any compounding effect. With annual compounding I work it out as 3.17% per annum.

xrjtg

atypical wrote: »

11.54/42*12 = 3.30% not 4.61%. That's a quick and dirty way of doing it but ignores any compounding effect. With annual compounding I work it out as 3.17% per annum.

3.17% annual growth is correct.

le_loup

atypical wrote: »

With annual compounding I work it out as 3.17% per annum.

OK clever clogs.
Show us all how to do it correctly.

Stochasticity

le_loup wrote: »

OK clever clogs.
Show us all how to do it correctly.

http://www.google.co.uk/search?sourceid=chrome&ie=UTF-8&q=google+calculator#sclient=psy&hl=en&source=hp&q=(42%2F12)+th+root+of+(11154%2F10000)&aq=f&aqi=&aql=&oq=&pbx=1&bav=on.2,or.r_gc.r_pw.&fp=4cb0eeca208f72b3&biw=1280&bih=679

Format is...

(Time in Years) th root of (End Value/Start Value)