What is the rate of return for Craig if he invested $12,000 and it grew to $15,500?

To calculate the rate of return on Craig's investment, the formula used is:

[

\text{Rate of Return} = \frac{\text{Final Value} - \text{Initial Value}}{\text{Initial Value}} \times 100

]

In this scenario, Craig invested $12,000, and it grew to $15,500. Plugging in the values:

1. Subtract the initial investment from the final value:

[

15,500 - 12,000 = 3,500

]

2. Then, divide the increase by the initial investment:

[

\frac{3,500}{12,000} = 0.29166...

]

3. To convert this into a percentage, multiply by 100:

[

0.29166 \times 100 \approx 29.17%

]

This means Craig's rate of return is approximately 29%, which aligns with your selection of the highest option. The calculation shows that by determining the growth of his investment as a proportion of the original amount, the calculated rate clearly indicates a return of around 29%, which is typically rounded in financial discussions