You invested $2,000 in the stock market one year ago. Today, the investment is valued at $1,620. What return would you need to get next year to break even overall?
2,000 - 1620 = ?
To determine the return you would need to break even overall, you need to calculate the rate of return required to reach your initial investment amount of $2,000.
Here's how you can calculate it:
1. Find the value difference between the initial investment and today's value: $2,000 - $1,620 = $380.
2. Divide the value difference by the initial investment: $380 / $2,000 = 0.19 (or 19%).
3. Convert the decimal to a percentage by multiplying by 100: 0.19 * 100 = 19%.
Therefore, you would need a return of 19% in the next year to break even overall.