Tools for Calculating Interest Rates

No financial plan is worthwhile without learning the rate of return on investments or savings. You need to know it to determine the amount of savings needed every months to meet a commitment (goal). In order not to be duped / tricked by someone, you must know the real rate of return Vs Offered rate of return. If you are a tax paying assesse, you would need to know the taxable equivalent return and after tax return so that taxes do not eat away your profits. When a lump sum is offered in return to your lending, you will love to know the effective annual rate. When you get an offer to buy a government secured security at a discount, you will surely wish to know the effective Yield to maturity.