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You are considering leveraging an investment of $50,000. You would borrow $40,000 at 10% and provide the balance yourself.
You are considering leveraging an investment of $50,000. You would borrow $40,000 at 10% and provide the balance yourself. If this investment increased in value by the end of the year by 30% what is your rate of return?A) 10%B) 20%C) 30%D) 50%E) none of the above
$Investment50000Less: Debt40000Own Investment 10000 % Return ($)30%1500010%4000110%11000