An investment costs $3,460 and pays $250 in perpetuity. what is the interest earned on this investment?

Given: -

Investment cost = $3,460

Perpetuity = $250

We need to find interest on investment.

Solution: -

Interest on investment = (Perpetuity/Investment Cost) * 100

Putting values in above formula,

($250/$3,460) * 100 = 7.225%

Interest on investment = 7.225%