This day last year, you purchased a rare hockey card of your favorite player for $20. Now one year later, that player has done really well. Knowing the card is worth $45, what would be your rate of return if you sold the card today:

Question

Quizplus · Accepted Answer

To find the rate of return, we use the following formula:

Rate of return = ((selling price - purchase price) / purchase price) x 100%

Plugging in the numbers, we get:

Rate of return = (($45 - $20) / $20) x 100%
Rate of return = ($25 / $20) x 100%
Rate of return = 1.25 x 100%
Rate of return = 125%

Therefore, the answer is choice C, which represents a rate of return of 125%.

This Day Last Year, You Purchased a Rare Hockey Card