CashTracperiodsingle

Splitting the CashTrac Period and Return %
For the first run, enter the first day of the period through 12/31 of calendar year #1 and the return % that corresponds to that period. For the second run, enter 1/1 of calendar year #2 through the last day of the period and the return % that corresponds to that period.

Example: Over your fiscal year of 7/1/97 - 6/30/98, your gift annuity investment pool had a net total return of 10%. To adjust the market values of your gift annuities with CashTrac, you must run CashTrac twice: once for 7/1/97 - 12/31/97 and once for 1/1/98 - 6/30/98. If you know the actual return %s for 7/1/97-12/31/97 and 1/1/98-6/30/98, use them. Otherwise, you must also split the 10% return into two parts that when multiplied together equal 10%.

A 10% return is the same as multiplying by 110% or 1.10. Since the two CashTrac periods are the same length, wesplit the 10% return evenly between them. To do this, take the square root of 1.10, then convert back to a percentage. The answer is 4.881%, as shown below.

return % = square root (1.10) = 1.04881 = 104.881%
104.881% - 100% = 4.881% return

To check your work: 1.04881 x 1.04881 = 1.10