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Business Math

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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 - ,

    The interest is your return, 100 dollars in the first year.

  • Business Math - ,

    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 - ,

    Is it certain that you will get the principle back for every kind of investment?

  • Business Math - ,

    No. When you invest in junk bonds or stocks you are not guaranteed that you'll get all of your initial investment back.

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