- compound annual return
- = CARThe total return available from an investment or deposit in which the interest is used to augment the investment. The more frequently the interest is credited, the higher the CAR.CAR = 1 + (nominal rate-number of times interest paid per annum) The CAR is usually quoted on a gross basis. The return, taking into account the deduction of tax at the basic rate on the interest, is known as the compound net annual rate (CNAR).
Big dictionary of business and management. 2014.
Look at other dictionaries:
compound annual return — See: compound annual growth rate … Financial and business terms
compound annual growth rate — Annual return calculated based on each year s previous balances where each previous balance includes both the original principal and all interest accrued from prior years. Best defined by example. Bloomberg Financial Dictionary If you invest $100 … Financial and business terms
Compound annual growth rate — (CAGR) is a business and investing specific term for the smoothed annualized gain of an investment over a given time period. CAGR is not an accounting term, but remains widely used, particularly in growth industries or to compare the growth… … Wikipedia
compound annual rate of return — ˌcompound ˌannual ˌrate of reˈturn noun [countable] FINANCE the amount of compound interest paid or earned on a sum of money in twelve months … Financial and business terms
Annual Return — The return an investment provides over a period of time, expressed as a time weighted annual percentage. Sources of returns can include dividends, returns of capital and capital appreciation. The rate of annual return is measured against the… … Investment dictionary
Compound Annual Growth Rate - CAGR — The year over year growth rate of an investment over a specified period of time. The compound annual growth rate is calculated by taking the nth root of the total percentage growth rate, where n is the number of years in the period being… … Investment dictionary
compound — com‧pound [kəmˈpaʊnd ǁ kɑːmˈpaʊnd, ˈkɑːmpaʊnd] verb [transitive] FINANCE to pay interest on both a sum of money and the interest already earned on it: • My bank compounds interest quarterly. * * * Ⅰ. compound UK US /ˈkɒmpaʊnd/ adjective FINANCE ► … Financial and business terms
compound net annual rate — CNAR See compound annual return … Big dictionary of business and management
Compound Return — The rate of return, usually expressed as a percentage, that represents the cumulative effect that a series of gains or losses have on an original amount of capital over a period of time. Compound returns are usually expressed in annual terms,… … Investment dictionary
Compound Net Annual Rate - CNAR — The return on an investment after taking tax implications into consideration. The compound net annual rate (CNAR) is much like an investment s compound annual rate except that tax liability is taken into account. CNAR is a truer representation of … Investment dictionary