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27 January, 08:19

John buys an investment for $100,000 at the beginning of the year. During the year, John receives $10,000 from his investment. At the end of the year, John sells his investment for $120,000. What is John's rate of return during the year?

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  1. 27 January, 10:28
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    10%

    Explanation:

    The computation of the rate of return during the year is shown below:

    Rate of return = (End year investment price - beginning year investment price + additional investment received) : (beginning year investment price)

    = ($120,000 - $100,000 + $10,000) : $100,000

    = $10,000 : $100,000

    = 10%

    Simply we applied the above formula so that the rate of return could come
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