Calculating the rate of return allows you to determine: ________.

A. If an individual is qualified to purchase an investment
B. The interest rate on the investment
C. If the investment is earning enough to meet or exeed your investment goals
D. The total cost of the investment

Respuesta :

Answer:

The answer is C. If the investment is earning enough to meet or exceed your investment goals

Explanation:

Rate of return is calculated by dividing the return you receive on your investment by the initial cost of the investment and then by multiplying it by 100.

Simply, this shows you how much you've received out of the investment you made initially.

So, a 10% rate of return means you have received 1/10th out of the initial investment and that at this rate, it will take 10 years to cover the cost of the initial investment.

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