Question

Keith invested 4,000 CAD four years ago, and today he found that

his investment had grown to 5,500 CAD. What rate of return Keith
has received over the four years?

Answer 1

Keith has received a rate of return of 37.5% over the four years.

To calculate the rate of return, we can use the formula:

Rate of Return = ((Final Value - Initial Value) / Initial Value) * 100%

Given that Keith's initial investment was $4,000 and it grew to $5,500 over four years, the rate of return can be calculated as:

Rate of Return = ((5,500 - 4,000) / 4,000) * 100% = 37.5%

Therefore, Keith has received a rate of return of 37.5% over the four years.