Dan Short invested $7,000 on October 1,2009,and in return he received a total of $6,200,which he collected on October 1,2010.The rate of return on Dan's investment was:
A)(12.9%)
B)12.9%
C)11.4%
D)(11.4%)

Question

Quizplus · Accepted Answer

The rate of return is calculated as (Final Value - Initial Investment) / Initial Investment. Here, it is ($6,200 - $7,000) / $7,000 = -11.4%. The negative sign indicates a loss.

Dan Short Invested $7,000 on October 1,2009,and in Return He