Net annualized return on Investment (NAR ... affiliated with Bryant University, here is the formula: Take the difference between the nominal rate [the total rate of return earned on an investment ...

Had we looked at multiple years of data, we would receive a holding period return but not an annualized return. Note that "t" represents the time in years expressed in your holding period return.

The Rule of 72 is a straightforward formula that provides a quick-and-dirty approximation of how long it will take for an investment to double in value assuming a fixed annual rate of return.