Calculating rate of return, Finance Basics

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Calculating rate of return

Assume that at the beginning of the year, you purchase an investment for $8,000 that pays $100 annual income. Also assume the investment's value has decreased to $7,400 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?

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Finance Basics: Calculating rate of return

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Request for Solution File

Ask an Expert for Answer!!

Finance Basics: Calculating rate of return

Reference No:- TGS049481

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Graph situation with budget constraint-indifference curve

Q : What should the standard deviation be

Q : Debt retirement operation on economy and financial markets

Q : Cost of capital from the bond debt

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Q : Draw the indifference curve to reach on the graph

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Request for Solution File

Ask an Expert for Answer!!

Finance Basics: Calculating rate of return

Reference No:- TGS049481

Recent Questions Asked Finance Basics

Q : Graph situation with budget constraint-indifference curve

Q : What should the standard deviation be

Q : Debt retirement operation on economy and financial markets

Q : Cost of capital from the bond debt

Q : Calculating rate of return

Q : Draw the indifference curve to reach on the graph

Q : Value-added and a non-value-added cost

Q : Estimating interest and approximate bond value

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