# how to explain yeild to someone - Posted by dwayne

Posted by dwayne on April 03, 1999 at 15:56:48:

Correction ********* yielding****yielding

how to explain yeild to someone - Posted by dwayne

Posted by dwayne on April 03, 1999 at 15:22:03:

I have someone who I’m trying to explain the principals of

Re: how to explain yeild to someone - Posted by Ed Garcia

Posted by Ed Garcia on April 03, 1999 at 20:23:31:

Dwayne:

I can give you a answer that is complicated, or I can keep it simple.
I?ve decided not only to keep it simple. But give you a good source
for information.

Go to, How to Articles.
This is a great source for information.

Go to, Glossary Of Common Terms Used In Loans And Lending
By Ed Wachsman.

Yield. Return on investment (the rate at which an investment pays interest
and/or dividends).

All of us should visit that location of this site from time to time.

Ed Garcia

Re: how to explain yeild to someone - Posted by Dave T

Posted by Dave T on April 03, 1999 at 17:29:16:

I am sure that there is a complicated technical definition.

Yield is the annualized return on the amount invested expressed as an interest rate. For example, If you have \$1000 invested and after one month your investment has grown to \$1010, your investment returned 1% in one month. Extrapolate this result to an entire year and your investment should return 1% every month or 12% for the entire year. You have an annualized return of 12%.

In a nutshell, the annualized return on investment divided by the investment itself when expressed as a percentage is called the yield.

We say that the yield (annualized return) on this investment is 12%, even if you stay in the investment for only one month and collect only \$10, the annualized return is 12%.