Question

B. You invest 100 in stocks and sell them one year later for103. To calculate the total dollar amount and percentage return, subtract the initial investment from the total return to get the dollar amount. Then divide the dollar amount by the initial investment and multiply by 100 to get the percentage. What is the total dollar amount and percentage return?

Answer 1

The total dollar amount of return on the investment is $3, and the percentage return on the investment is 3%.

Step-by-step explanation:

The student's question pertains to the calculation of total dollar amount and percentage return on an investment over a period of one year. To find the total dollar amount of return, subtract the initial investment from the final amount received from selling the stocks. In this case, you would subtract $100 (initial investment) from $103 (amount received after selling the stocks) to get a dollar return of $3. To calculate the percentage return, divide the dollar return by the initial investment and then multiply the result by 100. So, the percentage return is calculated as ($3 / $100) × 100, which equals 3%.