Understanding Investment Gains

• $900

• $1,100

• $100

• $1,000

What is the formula for calculating rate of return?

• (Total return / Total invested) × 100

• Total invested + Total return

• Total invested / Total return

• Total return × Total invested

• 15%

• 20%

• 25%

• 10%

The total amount of money invested is also called:

• Gross return

• Net profit

• Principal

• $600

• $5,000

• $5,600

• $500

Rate of return is usually expressed as a:

• Decimal

• Fraction

• Percentage

• Ratio

• 5%

• 4%

• 6%

• 2%

If your rate of return is negative, it means:

• Your investment increased

• You broke even

• You lost money

• You gained money

The amount earned from an investment after subtracting the original investment is called:

• Profit (or Net Return)

• Loss

• Revenue

• Expense

An investor wants a 10% return on a $10,000 investment. How much should the total return be?

• $10,000

• $1,000

• $11,000

• B and C