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6 April, 11:33

Nicholas initially invested $2,400 in a technology company. The company recently paid annual dividends of $22 and his year-end investment value was $2,000. What was the rate of return on his investment?

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  1. 6 April, 13:01
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    - 15.75%

    Explanation:

    The computation of the rate of return on his investment is shown below:

    = (Year end investment value - investment value + annual dividend) : (Investment value)

    = ($2,000 - $2,400 + $22) : ($2,400)

    = - $378 : 2,400

    = - 15.75%

    Simply we divided the difference of investment and added the annual dividend and then divided it by the investment value
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