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?

Question

Guest

Business

26 June, 08:51

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?

+1

Answers (1)

Know the Answer?

Neil Roth · Answer 1

- 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