Question

Suppose that you invest S1,100 in stock. Four years later, your investment yields $1,775. What is the rate of return of your investment? The rate of return is %. (Round to one decimal place.)

Answer 1

The rate of return is 61.3%.

Explanation:

Rate of return is given by:

`(current price - original price)/(original price)*100`

=
`(1775-1100)/(1100) *100`

=
`(675)/(1100) *100`

= 61.36% ≈ 61.3%

Hence, the rate of return is 61.3%.