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Dean invested $1100 into a bond. When the bond's maturity date was reached five
years later, Dean had a total of $1500. What is Dean's rate of return on investment?

Respuesta :

HumanBein

Answer:

About 36%.

Step-by-step explanation:

The formula for the rate of return on investment is the total value minus the initial cost divided by the initial cost.

The total value is $1,500. The initial cost is $1,100.

(1,500 - 1,100) / 1,100 = 400 / 1,100 = 4 / 11 = 0.363636363636

So, Dean's rate of return on investment is about 36%.

Hope this helps!

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