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Gnoma [55]
1 year ago
7

Jill pays $15,500 for shares in a new company. She sells the shares 8 years later for $12,500. What was her total return on this

investment? Round your answer to the nearest tenth of a percent.The Total Return on Jill's investment is %____

Mathematics
1 answer:
nataly862011 [7]1 year ago
8 0

Explanation:

The formula for getting the ROI or Return of Investment is:

ROI=\frac{finalvalue-initialvalue}{initial\text{ value}}\times100

In the problem, the initial value is $15,500 while the final value is $12,500.

Plugging these data into the formula above, we get:

TotalReturn=\frac{12,500-15,500}{15,500}\times100

Then, simplify.

\begin{gathered} TotalReturn=\frac{-3,000}{15,500}\times100 \\ TotalReturn=-0.193548\times100 \\ TotalReturn=-19.3548 \\ TotalReturn\approx-19.4\% \end{gathered}

Answer:

The total return on Jill's investment is -19.4%.

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