In the financial sector - particularly in banks and insurance companies - new trainees are often sent in search of the "interest rate". Of course, this can neither be found in the material store nor in the offices of colleagues.

Now you can find out what this term actually means! 😉

The interest rate is a calculation interest rate that is used to determine the profitability of an investment. In other words:
You calculate your internal rate of return.

Why is this so important?

When making investment decisions, it is important that these result in a higher return than could be achieved with the capital on the interest market.

You are planning an investment that will cost you 10,000.00 euros. Over the next three years, you expect a return of 800.00 euros each. In the third year, you will receive your investment back in full. 
You divide the annual repayment of EUR 800.00 by the invested amount of EUR 10,000.00.
The result of 0.08 means an interest rate of 8 %.

👉 Your investments are much more complex, but you still want to know the potential return in advance? No problem at all:
As tax consultants, we are not only professionals in tax law, but also advise you on economic issues.
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