Question

For an investment of $26,245, a quarterly statement reports that the account balance is $26,292. The statement also reports that for the same quarter, the rate of return on the investment was -0.02%. Given the information regarding the investment's current balance, does the reported rate of return seem reasonable? Use complete sentences to explain your answer.


WRITER

Answer 1

No, it does not seem reasonable. The quarterly statement reports an increase of $47, so it would be a positive rate of return on the investment instead of a negative rate.