Return of interest is 13%
Explanation:
Given:
Number of shares = 50
Cost of 1 share = $18.22
Total cost of the shares = 50 × $18.22
= $911
At the end of the year, the value of 1 share = $19.11
Total cost at the end of one year = 50 × $19.11
= $955.5
Gain in value = $955.5 - $911
= $44.5
Total dividend = $72.88
Total profit = $72.88 × $44.5
= $117.38
Return of Interest = Total profit / Initial total cost of the share
= ( $117.38 / $911 ) × 100
= 13%
Thus, return of interest is 13%
