## One Year Ago, You Invested $1,800. Today It Is Worth $1,924.62. What Rate Of Interest Did You Earn?

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## Answers ( 2 )

## One Year Ago, You Invested $1,800. Today It Is Worth $1,924.62. What Rate Of Interest Did You Earn?

## Introduction

Investing your money is a great way to grow your wealth and save for the future. While there are many options available, understanding the rate of interest you’re earning is important in order to maximize your returns. In this article, we’ll explore what happens when you invest $1,800 in an account with a given interest rate. We’ll look at how one year later, your $1,800 was worth $1,924.62. From there, we’ll explain how to calculate the rate of interest you actually earned and how to further leverage that knowledge for better investing decisions in the future.

## One Year Ago, You Invested $1,800

Assuming you’re talking about an investment in the stock market, one year ago you invested $1,800 in a company that is now worth $2,700. Your rate of return was 50%.

## Today It Is Worth $1,924.62

Assuming you invested in the stock market, one year ago your investment would have been worth $1,924.62 if you earned the average rate of return. The average rate of return for the stock market is approximately 10%.

## What Rate Of Interest Did You Earn?

Assuming you invested in a simple interest bearing investment, your interest rate is simply the difference between the value of your investment today and the value of your investment one year ago, divided by the original value of your investment. In this case, you would have earned a 5% interest rate on your investment.

However, if you invested in a compound interest bearing investment, your interest rate is slightly more complicated to calculate. In this case, you would take the difference between the value of your investment today and the value of your investment one year ago, divided by the original value of your investment, and then add 1 to that number. This would give you a 6% interest rate on your investment.

## Conclusion

In conclusion, the rate of interest earned on your $1,800 investment was 7.02%, which equated to $124.62 in profit over one year. While this may not seem like a great return for such a short period of time, it provides evidence that investing can be a profitable and rewarding endeavor – if done correctly. With careful research and planning you can identify investments with higher rates of return while still managing risk appropriately. By doing so, you can maximize your returns and create wealth over the long-term!

One year ago, you made a smart decision and invested $1,800 into the stock market. Fast forward to today, and you’ve earned a return of $124.62!

So, how did you do it?

Well, the rate of interest you earned was 6.9% over the course of one year.

This is something to be proud of, as you achieved more than the national average of 4.5% during the same period of time.

Your success demonstrates the power of using the stock market to your advantage, and how you can use it to grow your wealth.

It all starts with understanding the different types of investments available, and finding the best one for you.

Whether it’s stocks, bonds, mutual funds, or other investments, the key is to do research and find the ones that match your goals and risk tolerance.

Once you pick the right investment, you can use the power of compounding interest to your advantage.

Compounding interest is when interest accumulates on your original balance as well as on any interest earned.

This means that your earnings will increase every month, and over the course of a year you can see a significant return on your investment.

So, if you invested $1,800 one year ago and earned a rate of interest of 6.9%, then your return today would be $1,924.62.

It pays to invest!