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Return calculations   For the investment shown in the following​ table, calculate the rate of return earned...

Return calculations   For the investment shown in the following​ table, calculate the rate of return earned over the unspecified time period.  ​(Click on the icon located on the​ top-right corner of the data table below in order to copy its contents into a​ spreadsheet.)

Cash flow during period    ​Beginning-of- period value ​    End-of- period value

$3,650                                 ​$40,400 ​                                      $45,800

The rate of return on the investment is​%. ​(Round to two decimal places. If there is a​ loss, enter as a negative​ percentage.)

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Answer #1

Return = ( End of period value - Begining of period value + Cash flow during the period ) / Begining of period value

= ( 45,800 - 40,400 + 3,650 ) / 40,400

= 22.40 %

rate of return on the investment is 22.40​%

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