Pam runs a hot dog cart at the sports stadium. Will has no skills, no job experience, and no alternative employment. Entrepreneurs in the hot dog cart business earn $16 comma 000 a year. Will pays the rent of $500 a year, and his total revenue is $21 comma 000 a year. He borrowed $500 at 15 percent a year to buy equipment. At the end of one year, Will was offered $300 for his business and all its equipment.

Question

Business

Devan Galvan

23 July, 09:38

Pam runs a hot dog cart at the sports stadium. Will has no skills, no job experience, and no alternative employment. Entrepreneurs in the hot dog cart business earn $16 comma 000 a year. Will pays the rent of $500 a year, and his total revenue is $21 comma 000 a year. He borrowed $500 at 15 percent a year to buy equipment. At the end of one year, Will was offered $300 for his business and all its equipment.

+2

Answers (1)

Know the Answer?

Jeramiah Kramer · Answer 1

rate of return of fund = 3.66%

Explanation:

start = 327/23 = 14.22

end = 349/29 = 12.04

distributions = 1.5 + 1.2 = 2.7

rate of return of fund = 12.04-14.22 + 2.7 / 14.22

= 3.66%