Answer:
The rate of return is 14%
Step-by-step explanation:
The rate of return can be determined by,
RR = [tex]\frac{A_{f} - A_{i} }{A_{i} }[/tex] x 100%
where:
RR is the rate of return
[tex]A_f}[/tex] is the final amount = $690 - $6 = $684
[tex]A_{i}[/tex] is the initial amount = $15 x 40 = $ 600
So that,
RR = [tex]\frac{684 - 600}{600}[/tex] x 100%
= 0.14 x 100%
= 14%
Therefore, the rate of return is 14%.
