If you commit $200 to an investment at the beginning of the year, what is your rate of return for the period?
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A. B. C. D.A
To determine the rate of return on an investment, we need to know the beginning value, ending value, and the time period. In this case, we know the beginning value of the investment is $200, but we don't have information about the ending value or the time period. Therefore, we cannot calculate the rate of return with the given information.
In general, the formula for calculating the rate of return is:
Rate of return = (Ending value - Beginning value) / Beginning value
Let's assume that we have additional information that the investment grew to $220 by the end of the year. Then we can calculate the rate of return using the formula:
Rate of return = ($220 - $200) / $200 Rate of return = $20 / $200 Rate of return = 0.1 or 10%
Therefore, the answer to this question is not provided in the options given, as none of the options provides a rate of return of 10%. It is important to note that without knowing the ending value and the time period, we cannot accurately calculate the rate of return on an investment.