You invest $40,000 in a savings account. After one year, your investment has grown to $42,800 What is the percent yield of the investment? Percent yield of an investment formula: Percent yield=((final value−initial value)/(initial value))×100
Answer
A
6 percent
B
7 percent
C
4 percent
D
5 percent
Explanation
The investment earned $42,800 − $40,000 = $2,800. Using the formula, ($2,800 ÷ $40,000) × 100 = 7%, so the percent yield is 7 percent.
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