A customer with $30,000 to invest places $10,000 in Investment A; $10,000 in Investment B; and $10,000 in Investment C. During the course of 1 year, Investment A pays 2% in dividends; Investment B pays 7% in dividends; and Investment C pays no dividends. At the end of the year, Investment A is sold for $10,600; Investment B is sold for $9,200; and Investment C is sold for $9,300. The Total Return on Investment is: A 0% B 3% C 5% D 6%

The correct answer is A. Total return on investment is 0%.

Explanation:

Given that the consumer will invest his $ 30,000 in three different funds, with investment A paying dividends of 2%, investment B for 7% and investment C without paying dividends, the result of said investment after a year of duration will be as follows:

Investment A will award dividends of $ 200 (10,000 x 0.02)

Investment B will award dividends of $ 700 (10,000 x 0.07)

Investment C will not pay dividends.

Thus, the total return on investment will be $ 900.

Additionally, after this year the investor will sell said investments:

Investment A will be sold for $ 10,600, Investment B will be sold for $ 9,200 and Investment C for $ 9,300, totaling $ 29,100.

Said amount, added to the total annual return, gives us a total after investments and sales of $ 30,000, with which the total return after the investment and sale operation is $ 0, or 0% of the initial amount.

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