For this investment project, I learned the importance of choosing a good annual rate of return for investing in a company. A good annual rate of return for a company would be approximately 15%. However, when investing, one must consider other factors when choosing an annual rate of return. Inflation is one of the factors that can work against you, and this means that after each year, your money would be worth fewer and fewer. Another important factor is paying taxes if a person wants to sell their investment. This means that they have to pay taxes on profit that they have made from their investment. Ultimately, a good annual rate of return, is one that beats out inflation and taxes.
Hello Accelerated Math Students! As part of your Quarter 2 investment project, you will post on this blog using your holiday pseudonym. You will also comment on two other posts. EXTENDED DUE DATE: SUNDAY DECEMBER 11, 2016. The grades are now finished for the blog.
Thank you for posting this. If it weren't for your post, I never would've thought of inflation and taxes working against someone when they invest.
ReplyDeleteThanks for posting something I didn't have much knowledge about. I knew about how inflation and taxes were bad for investors, but didn't know too much about the details and how a good rate of return can overcome these bad situations.
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