Answer:
- 15.75%
Explanation:
The computation of the rate of return on his investment is shown below:
= (Year end investment value - investment value + annual dividend) ÷ (Investment value)
= ($2,000 - $2,400 + $22) ÷ ($2,400)
= -$378 ÷ 2,400
= - 15.75%
Simply we divided the difference of investment and added the annual dividend and then divided it by the investment value
