If your inital investment is $1000, and your rate of return is say 10%, did you make $100 or $1100 from your $1000?
Business Math - bobpursley, Friday, October 24, 2008 at 7:18pm
The interest is your return, 100 dollars in the first year.
Business Math - Ms. Sue, Friday, October 24, 2008 at 7:19pm
0.1 * 1,000 = ?
That's what you'll make on your investment.
Of course you'll also get the principle back as well as the interest.
Business Math - Jennie, Friday, October 24, 2008 at 7:40pm
Is it certain that you will get the principle back for every kind of investment?
Business Math - Ms. Sue, Friday, October 24, 2008 at 7:46pm
No. When you invest in junk bonds or stocks you are not guaranteed that you'll get all of your initial investment back.