Question

Calculate the rate of return on an initial investment of 6000 valued at 6500

A-4.3%
B-6.5%
C-8.3%
D-9.5%

Answer 1

The rate of return on the initial investment of $6000 valued at $6500 is 8.33%.

Step-by-step explanation:

To calculate the rate of return on an initial investment, we can use the formula:

Rate of Return = (Final Value - Initial Value) / Initial Value * 100%

In this case, the initial investment is $6000 and the final value is $6500. Plugging in these values into the formula, we get:

Rate of Return = (6500 - 6000) / 6000 * 100% = 500 / 6000 * 100% = 0.0833 * 100% = 8.33%

Therefore, the rate of return on the initial investment is 8.33%. So, the correct answer is C-8.3%.