Answer:
The rate of return is 14%
Step-by-step explanation:
The rate of return can be determined by,
RR =
x 100%
where:
RR is the rate of return
is the final amount = $690 - $6 = $684
is the initial amount = $15 x 40 = $ 600
So that,
RR =
x 100%
= 0.14 x 100%
= 14%
Therefore, the rate of return is 14%.
<em>Ohhh, interest problems. I haven't done an equation like this in a long time, but I will attempt.</em>
<em>I would say that the answer is the 2nd option. The equation is i = (5200)(0.06)(2.5).</em>
<em>The traditional interest formula is I = (P)(R)(N).</em>
<em>P = the original amount of money given</em>
<em>R = interest rate</em>
<em>N = the amount of time</em>
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<em>I hope this answers your question (and that I understood the question correctly!).</em>
<em>-Toremi</em>