Investment in Commercial Paper: A Profitable Journey
What is the potential return of a 270-day investment in commercial paper?
The 270-day holding period rate of return on the investment is calculated by subtracting the initial investment amount from the final amount received, dividing it by the initial investment amount, and expressing it as a percentage.
270-day Holding Period Rate of Return Calculation
To calculate the 270-day holding period rate of return, we first subtract the initial investment amount from the final amount received: $2,599,800 - $2,509,200 = $90,600. Then, we divide this difference by the initial investment amount: $90,600 / $2,509,200 = 0.0361. Finally, we express this value as a percentage by multiplying it by 100: 0.0361 * 100 = 3.61%. Therefore, the 270-day holding period rate of return on the investment is 3.61%.
Investing in commercial paper for a 270-day period has proven to be a lucrative decision, as it offers a healthy rate of return of 3.61%. This means that your firm will receive a return of 3.61% on the initial investment amount of $2,509,200 at the end of the investment period.
By wisely choosing to invest in commercial paper, your firm can enjoy a profitable journey and grow its financial portfolio. The calculated rate of return demonstrates the potential gains that can be achieved through strategic investing.
It is important to continue exploring investment opportunities and making informed decisions to maximize returns and secure financial stability. Keep up the great work in managing your firm's investments and embracing the possibilities of a successful financial future!