Question

Jacob invested $500 in a stock and after a year had $596. what was Jacobs rate of return?

Answer 1

Answer:

Jacob's rate of return is 19.2%.

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.

$=\frac{96}{500}\times 100$

$=\frac{9600}{500}$

$=\ 19.2\%.$

Therefore, Jacob's rate of return is 19.2%.