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?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Personal Finance

ISBN: 9781264101597

14th Edition

Authors: Jack Kapoor, Les Dlabay, Robert Hughes, Melissa Hart

See More Books

Question Posted: Nov 10, 2023 10:01 PM

See More Questions

Assume that at the beginning of the year, you purchase an investment for $5,500 that pays $110 annual income. Also assume the investment's value has increased to $6,400 by the end of the year. a....
Assume that at the beginning of the year, you purchase an investment for $7,100 that pays $80 annual income. Also assume that the investment's value has increased to $7,590 at the end of the year. a....
Giroud plc is considering two alternative investment opportunities. Each of the two projects has an expected life of five years and requires an initial investment of $100,000. A feasibility study...
Oasis Company has used the dollar-value LIFO method for inventory cost determination for many years. The following data were extracted from Oasiss records. Instructions Calculate the index used for...
In what ways does law facilitate certainty in the marketplace?
What is a promissory note, and what terms are normally included in promissory notes? AppendixL01
Survey evidence is often introduced in court cases involving trademark violation and employment discrimination. There has been controversy, however, about whether non probability samples are...
0 2018 578.3 (481.9) 96.4 Consider ne onowing income statement and mer informon Luther Corporation Consolidated Income Statement Year ended December 31 (in $ millions) 2019 Total sales 610.1 Cost of...
MBA 708 Essentials of Financial Statement Analysis Week 6 Case Study: Transaction and Financial Analysis Tallulah Company has been in business for several years and is publicly traded on a major U.S....
Assume that at the beginning of the year, you purchase an investment for $8,200 that pays $80 annual income. Also assume that the investments value has increased to $9,000 at the end of the year. 1....
Matt Jackson paid $1,000 for a corporate bond issued by Chevron Corporation. The annual interest rate for the bond is 2.36 percent. 1. What is the annual interest amount for the Chevron bond? 2....
Determine whether each statement is true or false, and explain why. The derivative of a sum is the sum of the derivatives.
The State of Confusion Legislature passes the following statute: "The State Health Commissioner, when in their opinion, there is sufficient covid - 1 9 vaccine that has been approved by the Federal...
Case 1 Baum Co. has two processing departments: Fabrication and Assembly. In the Fabrication Department, metal is cut and formed into various components, which are then transferred to Assembly. The...
Your earlier Personal Leadership Assessment, you looked at two areas of your leadership experience, those who led you and those you led. You will again address these two items in your Personal...
What is required in this situation: Content slides explaining the qualitative and quantitative steps necessary in conducting a sensitivity analysis. How can a project's risk be incorporated into a...
What is "marketing"? What is the difference between "marketing" and the "marketing process"?is it different in your home country vs. North america? Q2. What is the difference between "demand",...
Why is it more difficult to prevent shrinkage voids from forming in metals or alloys with large freezing ranges?
If the amplifier indicated by the box input impedance of oo, which of the following statements are true ? has an open loop gain as well as Feedback factor (\beta = 1/ R_1\) The feedback is voltage...
Reread the chapter-opening vignette. 1. In your view, have the Steeles really planned for the future? Discuss your answer. 2. Realizing the information is limited indicate which of the familys goals...
Discuss the choice of financial and nonfinancial goals and the part each may play in personal financial planning.
Compare future consumption to current consumption. Is one necessarily better than the other? Discuss.
in the tax year 2021, how much could a family receive for a 4 year old qualifying child
Note: This problem is for the 2019 tax year. Alfred E. Old and Beulah A. Crane, each age 42, married on September 7, 2017. Alfred and Beulah will file a joint return for 2019. Alfred's Social...
This is what I have written for my memo to the investors so far, I need help/ideas on what else to add to tell investors and whether to buy, sell, or hold this stock. The part of the project I need...

Assume that at the beginning of the year, you purchase an investment for $5,600 that pays $125

Question:

Step by Step Answer:

To calculate the rate of return for this investment we use the following formula Rate of retu...View the full answer

Personal Finance

Students also viewed these Business questions