For an investment of $26,245, a quarterly statement reports that the account balance is $26,292. the statement also reports that for the same quarter, the rate of return on the investment was - 0.02%. given the information regarding the investment's quarterly activity, is the reported rate of return reasonable? use complete sentences to explain your answer.
the balance is higher than the original investment; the rate of return can't be negative.
The rate of return is not reasonable. This is because the investment is $26,245 and the quarterly statement reports that the account balance is $26,292. It is clear that there is an increase in the investment. And the actual rate of return (($26,292-$26,244)/ $26,292)*100) is 0.18%.
and the quarterly statement report that the account balance is 26292
There is an increase by 47 (26,292−26,245)=47
So the actual rate is
Hope it helps :-)
in problems involving proportions, we can use cross products to test whether two ratios are equal and form a proportion. to find the cross products of a proportion, we multiply the outer terms, called the extremes, and the middle terms, called the means.