Question

You decide to sell the car you bought for $18,000 three years ago. Two years ago...

You decide to sell the car you bought for $18,000 three years ago. Two years ago you had to fix the engine for $2,500. Last year you paid $500 to leave the car at the car dealer to sells it. Today the dealer sold the car and gave you $16,500. What was your annual rate of return from this trade?

-3.24%

2.56%

-8.18%

7.49%

-6.12%
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Answer #1

Solution-

To Calculate Annual Rate of Return from this Trade -

Annual Rate of Return from this Trade = -8.18%

The Correct Answer is point C i.e. -8.18%.

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