Question

Suppose Johnny invests $41,745 into an account, which has been earning interest for many years and he now has a total of $39,974. In two or more sentences explain why a negative number would/wouldn’t be reasonable in the solution of the rate of the investment.

Answer 1

A negative number wouldn't be reasonable in investments because when you invest you are adding money to something. If you invest you aren't removing anything so there can't be negative numbers.

Answer 2

Depending on the type of investment, it would be reasonable to lose money.

Take stocks for instance, if you bought1 share of stock for $100 and the company closes or the market crashes, the stock value drops, so you could end up losing money.