Answer:
The correct Statement is the return on investments ratio is within the normal range.
Explanation:
Return on IRA = IRA balance - IRA beginning ÷ IRA beginning
= ($82,000 - $75,000) ÷ $75,000
= 9.33%
So, The return on the IRA ratio is 10% is incorrect
Return on Net Worth =(Net worth (end of the year) - Net worth (beginning of the year)) ÷ Net worth (beginning of the year)
= ($970,000 - $1,000,000) ÷ $1,000,000
= -3 %
Here, the second part is also incorrect as net worth ratio is 3.5%. and it come in negative return
.
The return on investment, the return on IRA and the return on net worth ratios are all within the usual range is incorrect as Return on Net Worth is Negative.
Therefore, the correct Statement is the return on investments ratio is within the normal range.
Return on IRA = (Investment balance (end of year) - Investment balance (beginning of year) ÷ Investment balance (beginning of year)
= ($115,000 - $100,000) ÷ $100,000
= 15%
