Calculate the nominal percent return from an investment of $300 in a share whose price increases to $375 after a year.
A) 75%
B) 20%
C) 25%
D) 16.67%

Question

Quizplus · Accepted Answer

Nominal percent return can be calculated using the formula: 
[(Ending value - Beginning value)/Beginning value] x 100%. 
In this case, the beginning value is $300 and the ending value is $375. Plugging these values into the formula: 
[(375 - 300)/300] x 100% = 25%. 
Therefore the nominal percent return is 25%, which is option C.

Calculate the Nominal Percent Return from an Investment of $300