Knowee
Questions
Features
Study Tools

Calculate the Rate of Return on an initial investment of $6,000 valued at $6,500. Responses8.3%8.3%6.5%6.5%4.3%4.3%9.5%

Question

Calculate the Rate of Return on an initial investment of 6,000valuedat6,000 valued at 6,500. Responses8.3%8.3%6.5%6.5%4.3%4.3%9.5%

🧐 Not the exact question you are looking for?Go ask a question

Solution

The rate of return is calculated using the formula:

Rate of Return = (Final Value - Initial Value) / Initial Value * 100%

Here, the initial investment is 6,000andthefinalvalueis6,000 and the final value is 6,500.

So, the rate of return is:

Rate of Return = (6,5006,500 - 6,000) / $6,000 * 100%

Rate of Return = 500/500 / 6,000 * 100%

Rate of Return = 0.0833 * 100%

Rate of Return = 8.33%

So, the rate of return on the initial investment of 6,000valuedat6,000 valued at 6,500 is 8.33%.

This problem has been solved

Similar Questions

You invest $9,000.00 today.  In 7 year's time, you expect the investment to grow to $15,500.00.What is the rate of return on your investment (in percent per annum)?Round your answer to 2 decimal places. E.g. if the answer is 5.8312%, please type 5.83 in the answer box (do not type the percentage sign).

An investor has accumulated $6,900 and is looking for the best rate of return that can be earned over the next year. A bank savings account will pay 5%. A one-year bank certificate of deposit will pay 7%, but the minimum investment is $9,900.Required:Calculate the amount of return the investor would earn if the $6,900 were invested for one year at 5%.Calculate the net amount of return the investor would earn if $3,000 were borrowed at a cost of 15%, and then $9,900 were invested for one year at 7%.Calculate the net rate of return on the investment of $6,900 if the investor accepts the strategy of part b

Fill in the Blank QuestionFill in the blank question.If you invested $5,000 four years ago and today the value of that money is $5,800, the rate of return for the entire period would be %.

If $2000 is invested at an interest rate of 9% per annum, compounded annually, what will the value of the investment be after 6 years?

The internal rate of return on this investment is closest to: blank1 - Numeric Answer

1/3

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.