Question

carlita pays $17,000 for shares in a new company. she sells the shares 8 years later for $11,500. what was her total return on this investment? round your answer to the nearest tenth of a percent.

Answer 1

To calculate the return as a whole number you will need to do the amount Carlita sells the shares for - the amount she bought the shares for

We can take from the question that:

- Carlita pays $17,000 for the shares

- She sells the shares for $11,500

Therefore, we do $11,500 - $17,000 which is equal to -$5500 meaning Carlita has made a loss.

Her total return on this investment is negative $5500