Suppose a number of your friends have organized a company to develop and sell a new software product.They have asked you to loan them $8,000 to help get the company started,and they have promised to repay your $8,000 plus 10% interest in one year.Of the following,which amount may be described as the return on your investment?
A)$8,000
B)$800
C)$8,800
D)$7,200

Question

Quizplus · Accepted Answer

The return on your investment would be the interest earned, which is 10% of $8,000 or $800. Therefore, the best choice is B. A is the initial investment, C is the total amount repaid including the initial investment and interest, and D is the initial investment subtracted from the total amount repaid.

Suppose a Number of Your Friends Have Organized a Company