Answer:
The overall rate of return is 16.67%
Step-by-step explanation:
The computation of the overall rate of return is shown below:
= Actual amount return ÷ investment amount
= ($15,000 × 23% + $140,000 × 16%) ÷ ($155,000)
= ($3,450 + $22,400) ÷ ($155,000)
= ($25,850) ÷ ($155,000)
= 16.67%
Hence, the overall rate of return is 16.67%
We simply applied the above formula and the same is to be considered