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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Simba who wrote (96989)	7/24/2002 7:10:12 PM
From: TimF	Read Replies (1) \| Respond to of 132070

Simba, as for the 32% return, I realized I made a math mistake the first time. I recalculated and I actually show about a 35% rate of return from the 6% DCA investment. I started with 1 and then multiplied by 1.06 (for the first years interest), then added 1 and multiplied by 1.06 for each year until the end of year 9. Then I took the result and divided it by 9 to get the rate of return. Do you see anything wrong with this method? The first time around I think I only did it for 8 years which is why my number was too low, but I can't understand why it is high now. As for the 18% gross return from DCA in to the S+P its too complex for me to try and test the results right now. It seems to low, but that is hardly a logical argument against it. It would be great if I had another source for that information. Tim