Question

Pam runs a hot dog cart at the sports stadium. Will has no​ skills, no job​ experience, and no alternative employment. Entrepreneurs in the hot dog cart business earn ​$16 comma 000 a year. Will pays the rent of ​$500 a​ year, and his total revenue is ​$21 comma 000 a year. He borrowed ​$500 at 15 percent a year to buy equipment. At the end of one​ year, Will was offered ​$300 for his business and all its equipment.

Answer 1

rate of return of fund = 3.66%

Step-by-step explanation:

start = 327/23 = 14.22

end = 349/29 = 12.04

distributions = 1.5 + 1.2 = 2.7

rate of return of fund = 12.04-14.22 +2.7 / 14.22

= 3.66%