The AAA-Profit Investment Plans.

In the “First Thoughts” article about AAA-Profit that appeared in our blog a few days ago, we briefly introduced the company’s investment plans in the following way:

For the online investor, AAA-Profit offers four investment plans.  Three of them pay a return on a daily basis and are 30 days long and the fourth pays a one-shot return at the end of a short five-day investment period.  All of the four plans return your investment as part of your earnings.

A few quick calculations tell me that the AAA-Profit investment plans are very lucrative, but not to the point of promising unreasonably high returns (at least for the HYIP industry).  We’ll have more to say about the pros and cons of this program in our review which should be available in our blog in a few days.  Please stay tuned…

Here is the complete information on the investment plans as given on the website:

• Beginner Plan
• 5% daily for 30 days
• \$10 – \$2,000
• Intermediate Plan
• 6% daily for 30 days
• \$100 – \$5,000
• Ultimate Plan
• 7% daily for 30 days
• \$5,000 – \$20,000
• Quick Return Plan
• 110% after 5 days
• \$50 – \$5,000

Analysis of the AAA-Profit Investment Plans.

Let’s begin by determining how long it takes for each of the investment plans to break even.  For the Beginner Plan, if you divide 100% buy the 5% return, you find that the plan will break even in exactly 20 days.  The Intermediate and Ultimate Plans will break even sooner due to the higher interests that they pay, with breakeven points of 17 and 15 days, respectively.  For the Quick Return Plan, since you don’t receive any return at all until the plan ends after five days, that’s when it will break even.

The total GROSS interest that you will receive from the Beginner Plan will equal the daily gross interest of 5% times the 30-day length of the plan, or 150%.  Since this includes your investment, you must subtract 100% from it to get the total NET interest that the plan will pay you.  The result is 50%.  Averaging this out over the 30-day length of the plan by dividing by 30, you get an average daily net interest (DNI) of 1.67%.  If you do the same arithmetic for the Intermediate and Ultimate Plans, you will get DNIs for them of 2.67% and 3.67%.  The Quick Return Plan is a different sort of animal than the three previous plans.  It should be clear that the total net profit that you receive from this plan will be 10%.  If you average this out over the five-day length of the plan you get a DNI of exactly 2%.

It is important to remember that, although DNI is an “imaginary” quantity (you don’t actually receive interest at this rate), it is an extremely important one because it enables you to compare the net profit you receive from different investment plans.  A long plan might pay you a very high net profit while a short one will only pay a low profit.  The important thing is how much net profit you will earn on a “per day” basis.  That’s what DNI is all about.

In summary here’s what we have found out in our analysis of the AAA-Profit investment plans:

• Plan                             DNI                  Days to Break Even
• Beginner                     1.67%              20 days
• Intermediate               2.67%              17 days
• Ultimate                      3.67%              15 days
• Quick return                2%                   5 days

In Part 2 of our review, we’ll discuss these results and attempt to arrive at some conclusions concerning the strong and weak points of these investment plans.  We’ll also work out a few examples of earnings that can be made with them.  Please stand by.  Part 2 will be published in a few days.

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