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5. Finance

Quick questions on Average rate of return - OCR GCSE Business

2short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.

What is q1?
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An investment earns total profit of 24,00024{,}000 over 44 years. Calculate the average annual profit. [1 mark]
What is q2?
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An investment of 20,00020{,}000 gives an average annual profit of 5,0005{,}000. Calculate the ARR. [2 marks]

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