Answer:
Mike's return for the net worth of the year is 22.00%
Explanation:
Total Net Worth = Assets - Liabilities
In the start,
• Net Worth = 600,000 - 200,000 = 400,000
At end of year,
• Net Worth = 700,000 - 180,000 = 520,000
The Contribution made (During the year) = 27,000 + 5,000 = 32,000
Therefore,
Return on the Net Worth = ( 520,000 - 32,000 ) / 400,000 - 1 = 22.00%
