In simple interest, the interest rate is
i=(10500-9000)/9000=16.67%
In compound interest, compounded monthly,
10500=9000(1+i/12)^12
=>
APR=12(10500/9000)^(1/12)-1
=11.155%
(effective interest is still 16.67%)
Answer:
10.57%
Explanation:
Return on investment is a profitability measure of gains realized from an investment. It is a ratio that shows how a business uses its resources to generate profits. Return on investment compares the net income against the initial investment.
ROI = Net Income / Cost of Investment
For Tommy,
The initial investment is 35 x $45.75 =$1,601.25
The gains from the investments
Dividends of $82.45
Gains in share value = 35 x ($48. 75 -$45.43)
35 x 2.48 =$86.8
Net gains will be $82.45 + $86.8= $169.25
ROI = $169.25/$1601.25
ROI =0.10569 X 100
=10.57%