what is the rate of return on an initial investment of $2000 and you generate $500 return?
To calculate the rate of return on an initial investment, you need to divide the return on investment by the initial investment and express it as a percentage. In this case, the initial investment is $2000 and the return is $500.
To calculate the rate of return, follow these steps:
1. Subtract the initial investment from the total return: $500 - $2000 = -$1500.
2. Divide the result by the initial investment: -$1500 / $2000 = -0.75.
3. Multiply the result by 100 to convert it to a percentage: -0.75 * 100 = -75%.
The rate of return on the initial investment of $2000, with a $500 return, is -75%.