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


To: TimF who wrote (96996)7/24/2002 7:37:11 PM
From: Simba  Respond to of 132070
 
twfowler:

The method you describe is right for a constant stream and IRR does something similar although it is an inverse calculation where you input the last years principal and it works backward recursively to get the rate of return. I checked the calculations again. My chart a gross return of about 35%. If you plugin 1.35 times $900 for the last item in the series and then do an IRR it gives 6% within 1 decimal point.

As to the Sp500 DCA giving 18%, it is a little more involved calculation. I will post it when I get time.

Simba