The Total Return on an investment is the relative change in the investment value:

Jenelle pays $14,500 for shares in a new company. She sells the shares 8 years later for $12,500. What was her total return on this investment? Round your answer to the nearest tenth of a percent.

The Total Return on Jenelle's investment is
%

To calculate the Total Return on Jenelle's investment, we can use the following formula:

\[
\text{Total Return} = \frac{\text{Final Value} - \text{Initial Value}}{\text{Initial Value}} \times 100\%
\]

Given:
- **Initial Value** = $14,500
- **Final Value** = $12,500

Substituting these values into the formula:

\[
\text{Total Return} = \frac{12,500 - 14,500}{14,500} \times 100\%
\]

\[
\text{Total Return} = \frac{-2,000}{14,500} \times 100\%
\]

\[
\text{Total Return} \approx -13.8\%
\]

So, the Total Return on Jenelle's investment is approximately **-13.8%**.

Would you like further details or have any questions?

Here are some related questions:
1. What does a negative total return indicate about an investment?
2. How can Jenelle calculate her annualized return based on the 8-year holding period?
3. What factors might influence whether an investment gains or loses value over time?
4. How does the concept of risk relate to potential returns on investments?
5. How would the return change if Jenelle had received dividends during the holding period?

**Tip:** When assessing investments, always consider both the potential return and the associated risk before making a decision.

Learn how to calculate the total return on an investment using Jenelle's case study. Understand the formula for total return, apply it to real financial data ($14,500 initial investment and $12,500 final sale), and determine the percentage return. Suitable for Grades 9-12 students and anyone interested in financial mathematics.

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