# 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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