Assume that at the beginning of the year, you purchase an investment for $5,600 that pays $125
Question:
Assume that at the beginning of the year, you purchase an investment for $5,600 that pays $125 annual income. Also assume the investment’s value has increased to $5,900 by the end of the year.
1. What is the rate of return for this investment?
2. Is the rate of return a positive or a negative number?
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To calculate the rate of return for this investment we use the following formula Rate of retu...View the full answer
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Related Book For
Personal Finance
ISBN: 9781264101597
14th Edition
Authors: Jack Kapoor, Les Dlabay, Robert Hughes, Melissa Hart
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