Answer:
Jacob's rate of return is <u>19.2%</u>.
Step-by-step explanation:
Given:
Jacob invested $500 in a stock and after a year had $596.
Now, to find the rate of return.
So, we get the amount of return first:
Present value - value before a year = Return.
$596 - $500 = $96.
Now, to get the rate:
Return / Value before a year × 100.
Therefore, Jacob's rate of return is 19.2%.