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%.
OK. All the work is in the attached drawing.
Please spend enough time with it to understand what was done and how, so that you can do the next problem like this one completely on your own.
Good luck !
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Here's a picky pickypoint to think about concerning the "cost". I'm not quite sure what to do about this:
The initial, one-time $55 is a "deposit". If she doesn't smash the bike or steal it, she gets the $55 back when she returns the bike.
So if she eventually gets the $55 back, <u><em>is it a cost</em></u> ? ? I don't know how to think about it.
She does need to <em>give</em> them the $55 at the beginning, just to take the bike out. So she has to have it with her and give it to them temporarily, even though she'll get it back, and she'll still have it when she returns home.
So here's the story:
-- While she HAS the bike, the graph correctly shows all the money she needs, in order to get the bike, and keep it for however long she keeps it.
-- Finally, at the end of the week, after she returns the bike and gets her $55 back, the line and everything on the graph will shift down by $55. The line will start at zero, and the little red ordered pairs will also shift straight down and still be on the line.
To put it one more way:
-- While Jen has the bike, the y-intercept of the graph is $55.
-- After she returns the bike in good condition, the y-intercept is zero.
