An Investor has deposited $25,400 for a year. It has become $28,200. Calculate the rate of...

An Investor has deposited $25,400 for a year. It has become $28,200. Calculate the rate of return in a year.

Solutions

Expert Solution

Initial Deposit(P0) = $25,400

Deposit value in a year(P1) = $28,200

calculating the rate of return of deposit:-

Rate of Return = (P1 - P0)/P0

Rate of Return = ($28,200 - $25,400)/$25,400

Rate of Return = 11.02%

so, the rate of return in a year is 11.02%

jeff jeffy answered 2 years ago

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