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
money yeilding. I’m not doing a good job. please advise

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.

Answer:
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%.