On the calculator that comes with your phone, there is a square root button, cube root button and nth root button. nRoot button is a small y over root sign and x inside the root. Lets learn to use the power of nRoot button to calculate our returns. 

So lets say you bought a piece of land in Kathmandu 15 years ago for 5 lakhs per ana. And assume you sold it today at 35 lakhs per ana. So how much did you make in annual compound rate ? Did you beat the bank FD rate? Lets figure out.

35 lakhs divide by 5 lakhs is 7. Our original investment grew by 7 fold in 15 years. So now on your calculator if you enter 7 nRoot 15 you get 1.1385 and deduct 1, you get 0.1385 and multiply by 100. You get 13.85% which is your annual compound rate for last 15 years. So in our case we did quite better than bank FD because average Fd rate has been below 10 for last 15 years. 

How about 25 years ago when the land price were dirt cheap. It was about 1 lakhs per ropani in place like Kapan and Narayanthan. 1 lakhs per ropani was about 7000 per ana. Today it fetches about 20 lakhs around there. So 20 lakhs divide by 7000 is 285.71. And so
285.71 nRooot 25 = 1.2538 and minus 1 is 0.2538 and multiply by 100 is 25.38% which is annual returns over 25 years which is an awesome returns. Even if we discount inflation of about 5% it still comes to a handsome 20% returns per year for 25 years.

If you are not familiar with 72 rule and 240 rule please learn them as well as they become handy to your everyday investment tools.

Happy Investing!!!

More at: r/NepalStock by opanMind

  1. If you don’t have nth root (mine doesn’t) you can do it the long way.

    ((Total / Principle) ^ (1 / time in years)) – 1

    (35/5)^(1/15) – 1

  2. esko euta tiktok video or youtube animation banayera bujham ta, ali bujhna garai paryo. Math kamjor nai chha.

  3. >So now on your calculator if you enter 7 nRoot 15 minus 1, you get 0.1385

    How do you get that?I got 1.4579


Leave a Reply

Your email address will not be published.

You May Also Like

Nepal Vs India on Stock Exchange. Memetainment.

Nepal Vs India on Stock Exchange. Memetainment. More at: r/NepalStock by duck_student

Need of another Stock Exchange in Nepal and its relevance?

SEBON made it public that it was speeding up the process of…

Nepse Share Calculator Nepal – Buy, Sell, Average Price Calculator in Nepal

Created Simple web-based Nepse Share Calculator, where you can calculate Buy/SELL Amount.…

Any good facebook page that regularly posts news/articles about stock trading/investing/world markets?

. More at: r/NepalStock by [deleted]

Buy NEPSE Domain. nepalstock.com expired ?

Buy NEPSE Domain. nepalstock.com expired ? More at: r/NepalStock by Yikings-654points