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If you invest 25 dollars, and a year later they give you back $25.50, what did that investment yield ?

Don't count the $25 you put in. That was yours all the time, and just having it returned is no big deal.

The investment yielded 50¢ . That's 2 percent of the $25 that you put in, so the investment yielded 2% for the year.

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15y ago

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