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The Total Return on an investment is the relative change in the investment value:

The Total Return on an investment is the relative change in the investment value:-example-1
User Kimbert
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Based on the problem, here is the given information:

Initial Value = $18,000

Ending Value after 8 years = $11, 000

To get the total return, let's use the given formula and plug in the information above.


\begin{gathered} \text{Total }Return=\frac{EndingValue-InitialValue\text{ }}{\text{Initial Value}} \\ \text{Total }Return=(11,000-18,000)/(18,000) \end{gathered}

Solve.


\begin{gathered} \text{Total }Return=(-7,000)/(18,000)=-0.38888 \\ -0.38888*100=-38.888\approx-38.9 \end{gathered}

Hence, the total return on Katy's investment is -38.9%.

User Jan Andersen
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