Given an initial investment and a set of returns, this calculates the Accounting Rate of Return

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- Average Returns = Σ Returns / n

Average Rate of Return (ARR) = Average Returns / Initial Investement

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- accounting rate of return
- financial ratio used in capital budgeting

Average Return / Average Investment - formula
- a fact or a rule written with mathematical symbols. A concise way of expressing information symbolically.
- investment
- an asset or item acquired with the goal of generating income or appreciation.
- percent
- a specified amount in or for every hundred. one part in every hundred.

n% = n/100 - return
- a performance measure used to evaluate the efficiency of an investment or compare the efficiency of several investments.