Question

Samuel invested $210 per acre for seed, fertilizer, fuel, depreciation, and land use. If he grosses$220 per acre this year, what percent return does he earn on his investment?

Answer 1

Let's begin by identifying key information given to us:

Amount invested (Initial Value) = $210 /acre

Gross income (Final Value) = $220 /acre

The percentage return is given by:

`\begin{gathered} Return=(FinalValue-InitialValue)/(InitialValue) \\ Return=(220-210)/(210)=(10)/(210) \\ Return=0.04762\approx4.76\approx4.8 \\ Return=4.8\text{\%} \end{gathered}`

Therefore, the return on investment is 4.8%