Question

For an investment of $26,245, a quarterly statement reports that the account balance is $26,292. The statement also reports that for the same quarter, the rate of return on the investment was - 0.02%. Given the information regarding the investment's quarterly activity, is the reported rate of return reasonable? Use complete sentences to explain your answer.

Answer 1

No

Explanation:

the balance is higher than the original investment; the rate of return can't be negative.

Answer 2

The of return is not reasonable because the investment is 26245
and the quarterly statement report that the account balance is 26292
There is an increase by 47 (26,292−26,245)=47

So the actual rate is
(47÷26,245)×100=0.18%

Hope it helps :-)