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Calculating rate of return

Updated

Students calculate the rate of return to measure an investment’s performance and answer questions about investing.

Big idea

Rate of return is a common way to measure and compare the growth of investments.

Essential questions

  • What is rate of return?
  • How does rate of return help you determine how well investments have performed?

Objectives

  • Understand how rate of return helps measure investments’ performance
  • Use a simple rate of return formula to calculate investments’ gains or losses

What students will do

  • Calculate the rate of return for a range of investments.
  • Share their thoughts on topics related to investing.