Question

Dana invested $10,000 in a new technology stock. Six years later the stock had tripled in Value. What was the percent increase (rate of return) on her investment?

___________%

Answer 1

The new value of the stock is 3 times the original value, which is $10,000 x 3 = $30,000.

The increase in value is $30,000 - $10,000 = $20,000.

The rate of return is the increase in value divided by the original investment, which is $20,000/$10,000 = 2 or 200%.

Therefore, the percent increase (rate of return) on Dana's investment is 200%.