Answered: a. What is the rate of return for this…

Business

Economics

a. What is the rate of return for this investment? Note: Input the amount as a positive value. Enter yo

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

J
Assume that at the beginning of the year, you purchase an investment for $14,200 that pays $95 annual income. Also assume
the investment's value has increased to $15,800 by the end of the year.
a. What is the rate of return for this investment?
Note: Input the amount as a positive value. Enter your answer as a percent rounded to 2 decimal places.
Rate of return
b. Is the rate of return a positive or a negative number?
O Positive
O Negative

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