9
QuizMultiple Choice

Investing and Financial Markets — Unit test

Question 9 • Personal Finance - EL3403

Siva invests $100 into supplies to make cookies to sell. Each box of cookies costs $5. At what point has he hit the rate of return?

Answer
A
when he has made $100
B
when he makes a large profit
C
the moment he sells a box for $5
D
immediately upon buying the supplies

Explanation

Siva’s rate of return begins when he has earned back the $100 he invested in supplies. Selling boxes for $5 each brings in revenue, but he must earn $100 total to recover his investment; selling just one box earns only $5. So the correct choice is when he has made $100.

AI-written and checked against the verified answer.

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