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I think my way is a valid way to look at it--arguably the best way.

Suppose you did invest the $2754 in an interest-bearing account and then drew out $9 each day to pay for your wine. If the account earned 5% interest, it would run dry after 313 days. The only way it would pay out $9 per day for 360 days would be if it paid an interest rate of 33.35%, just as I said. (As an earlier poster suggested, if a bank actually paid that nominal rate, they'd be sure to claim in their ads that the compounded rate was 40%.)

If an alternative investment would have to pay that rate to stay even, I say that my calculation of the return is not only perfectly reasonable, but actually correct.

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