You have an investment opportunity that requires an initial investment of $5,000 today and will pay $6,000 in one year. What is the rate of return of this​ opportunity?   The rate of return for this opportunity is ____%.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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You have an investment opportunity that requires an initial investment of
$5,000 today and will pay $6,000 in one year. What is the rate of return of this​ opportunity?
 
The rate of return for this opportunity is ____%.
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Step 1

The rate of return is the rate at which the amount is invested or the investor will receive the interest on that rate.

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