Question

Suppose that you invest S1,100 in stock. Four years later, your investment yields $1,775. What is the rate of return of your investment? The rate of return is %. (Round to one decimal place.)

Answer 1

Answer:

The rate of return is 61.3%.

Step-by-step explanation:

Rate of return is given by:

$\frac{current price - original price}{original price}\times100$

= $\frac{1775-1100}{1100} \times100$

= $\frac{675}{1100} \times100$

= 61.36% ≈ 61.3%

Hence, the rate of return is 61.3%.