Answer:
The 350-day holding period rate of return on the investment is:
= 3.5%
Explanation:
a) Data and Calculations:
Investment = $2,504,600
Total receipts from investment = $2,592,400
Investment period = 350 days
Returns (dollars) = $87,800 ($2,592,400 - $2,504,600)
Rate of return = $87,800/$2,504,600 * 100
= 3.5%
b) The rate of return is calculated as ((Current value - Original value) / Original value) x 100. It shows, in percentage terms, the return earned by an investment over a period of time.
