Suppose a number of your friends have organized a company to develop and sell a new software product.They have asked you to loan them $8,000 to help get the company started,and have promised to repay your $8,000 plus 10% interest in one year.Of the following,which amount may be described as the return on your investment?
A)$8,000
B)$800
C)$8,800
D)$7,200

Question

Quizplus · Accepted Answer

The return on the investment is the amount of profit earned on the initial investment. In this case, the initial investment is $8,000 and the promised interest is 10%, so the return after one year would be $800 (10% of $8,000). Therefore, the correct answer is B, $800. The other answer choices represent either the initial investment or the total amount to be repaid, but not the return on the investment.

Suppose a Number of Your Friends Have Organized a Company