Question

To determine the annual yield (rate of return) on an investment, divide the income from the investment for the year by the original amount invested. Look at the example. Then, calculate the annual yield for the other investment

Answer 1

Savings account: $4 / $200 = 0.02 x 100 = 2%

Bond: $85 / $1000 = 0.085 x 100 = 8.5%

Real Estate: $6,400 / $40,000 = 0.16 x 100 = 16%