Calculating Rate of Return. Assume that at the beginning of the year, you purchase an investment for

Question:

Calculating Rate of Return. Assume that at the beginning of the year, you purchase an investment for $7,200 that pays $100 annual income.

Also assume the investment’s value has decreased to $6,800 by the end of the year.

a. What is the rate of return for this investment?

b. Is the rate of return a positive or negative number?

LO13-2

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: 9781260799736

13th Edition

Authors: Jack Kapoor

See More Books

Question Posted: Jul 23, 2024 07:00 AM

See More Questions

Verify that the functions are probability density functions for a continuous random variable X over the given interval. Determine the specified probability. f(x) = xe over [0, ), P(1 X 3)
Excel project: using benfords law to detect potential disbursements fraud.* Required Read the article using spreadsheets and benfords law to test accounting data, By mark g. Simkin in the isaca...
Christina runs an IT consulting firm in a competitive market. She recently determined that hiring an additional consultant would mean that she would be able to serve five more clients per week....
Do you have legal documents, such as a living will or a power of attorney, specifying your instructions in the event of your death or incapacitating illness?
Miscellaneous transactions and adjusting entries Platinum Fields Limited (Platinum Fields) is a South African platinum producer. Platinum Fields applies IFRS, and reports its results in millions of...
find the variance for a security that has three one-year returns of -15%,15% and 30% A)1050% B) 62.50% C)525% D)25.00% E) None of the above
Calculating Rate of Return. Assume that at the beginning of the year, you purchase an investment for $6,100 that pays $80 annual income. Also assume that the investments value has increased to $6,900...
Determining Interest. Assume that you purchased a corporate bond with a face value of $1,000. The interest rate is 4.20 percent. What is the dollar amount of annual interest you will receive each...
16. Describe the difference in a set of financial statements for a governmental university and a private notfor- profit university.
Discuss the significance of indigenous knowledge and explain two participatory methods that can be used to support the integration of indigenous knowledge in community development.
The price elasticity of demand for health care is often thought of as a measure of ex post moral hazard , which roughly captures the extent of overuse of medical care. Health insurance causes the...
Diagnose malfunctions with computers and the network to ensure the maximum availability of network services
QUESTION 5 There are several key drivers for successful IT implementation in healthcare organizations. Provide at least three key drivers and explain why they play important roles in healthcare IT...
Identify and discuss a financial intermediary ( bank or another financial institution ) that has demonstrated either poor or good stewardship from a Christian perspective
A wire with mass 40.0 g is stretched so that its ends are tied down at points 80.0 cm apart. The wire vibrates in its fundamental mode with frequency 60.0 Hz and with amplitude at the antinodes of...
Transform the while loop from the previous exercise into an equivalent for loop (make sure it produces the same output).
You are given these cash flows for an investment project (the time 0 cash flow is missing): 0: _______ 1: +$115,000 2: +$132,250 If the required return (cost of capital) is 15%, and the net present...
The following is a partial listing of accounts for Nosara, Inc., for the year ended December 31, 2021. Required: Prenare a halance sheet in onod format for December 31. 2021
7. Taxpayers can have their refunds: a. sent to them by check. b. issued on a credit card. c. directly deposted into their bank account. d. either a. or c. above. e. any of the above

Calculating Rate of Return. Assume that at the beginning of the year, you purchase an investment for

Question:

Step by Step Answer:

Personal Finance

Students also viewed these Business questions