Answered

Welcome to Westonci.ca, the Q&A platform where your questions are met with detailed answers from experienced experts. Discover precise answers to your questions from a wide range of experts on our user-friendly Q&A platform. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform.

you invest $25,000 in a Perpetuity fund that pays you $3,000 a year forever what is your rate of return in this investment

Sagot :

abiolataiwo2015

Answer:

12%

Explanation:

Calculation for what is your rate of return in this investment.

Using this formula

Rate of return=Amount paid a year /Amount invested in

Perpetuity fund

Let plug in the formula

Rate of return=$3,000/$25,000

Rate of return=0.12*100

Rate of return=12%

Therefore the Rate of return will be 12%

Thank you for your visit. We are dedicated to helping you find the information you need, whenever you need it. We appreciate your time. Please come back anytime for the latest information and answers to your questions. Get the answers you need at Westonci.ca. Stay informed by returning for our latest expert advice.