Question

For an investment of $26,245, a quarterly statement reports that the account balance is $26,292. The statement also reports that for the same quarter, the rate of return on the investment was -0.02%. Given the information regarding the investment's current balance, does the reported rate of return seem reasonable? Use complete sentences to explain your answer.

Answer 1

The balance is greater than the invested amount, so the rate of return is positive for the quarter. -0.02% is a negative return, inconsistent with the current balance. The reported rate of return is NOT reasonable.