Question

The Total Return on an investment is the relative change in the investment value:Total ReturnEnding Value-Initial ValueInitial ValueAna pays $16,000 for shares in a new company. She sells the shares 8 years later for $11,000. What was her total returnon this investment? Round your answer to the nearest tenth of a percent.The Total Return on Ana's investment is%

Answer 1

Answer:

She took a 45.5% loss on the investment

Step-by-step explanation:

Parameters:

Initial value = $16,000

Final value = $11,000

Clearly, she has sold shares at a lower price to how she bought, so we should expect a loss.

`\begin{gathered} (Final-Initial)/(Final)*100 \\ \\ =(11000-16000)/(11000)*100 \\ \\ =(-5000)/(11000)*100 \\ \\ =(-5)/(11)*100 \\ \\ =-45.5 \end{gathered}`

She took a 45.5% loss on the investment