Assume that at the beginning of the year, you purchase an investment for $6,500 that pays $95 annual income. Also assume theinvestment's value has increased to $7,050 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.

Initial Value at time 0 is $6,500Annual Income $95Value of Investment increased to $7050 in one year

Answered: Assume that at the beginning of the…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Assume that at the beginning of the year, you purchase an investment for $6,500 that pays $95 annual income. Also assume the investment's value has increased to $7,050 by the end of the year.