A $200 savings account that earned $5 after one year would have a rate of return, or yield, of 5 percent.

Question

Quizplus · Accepted Answer

To calculate the rate of return, we need to divide the earnings by the initial amount invested and multiply by 100%:

Rate of return = (Earnings / Initial investment) x 100%

In this case: 
Rate of return = ($5 / $200) x 100% = 2.5%

Therefore, the correct answer is B, as the rate of return would be 2.5%, not 5%.

A $200 Savings Account That Earned $5 After One Year