Example

Calculating Rate of Return on an Agricultural Investment (Julia's Grain)

An agricultural project provides another example of calculating the rate of return. If Julia invests by planting 30 units of grain and later harvests 45 units, her rate of return is 50%. This is determined by the formula $1 + \text{rate of return} = \frac{45}{30} = 1.5$, which corresponds to a 50% return on her initial investment.

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Updated 2025-08-11

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