How do you calculate the rate of return on an investment?

Question

Quizplus · Accepted Answer

To calculate the rate of return on an investment, you need to divide the amount of gain by the original amount invested. This will give you a decimal or percentage that represents the return on your investment. For example, if you invested $1,000 and sold your investment for $1,200, your gain is $200. To calculate the rate of return, you would divide $200 by $1,000, which equals 0.20, or 20%.

How Do You Calculate the Rate of Return on an Investment