Based on the problem, here is the given information:
Initial Value = $18,000
Ending Value after 8 years = $11, 000
To get the total return, let's use the given formula and plug in the information above.
[tex]\begin{gathered} \text{Total }Return=\frac{EndingValue-InitialValue\text{ }}{\text{Initial Value}} \\ \text{Total }Return=\frac{11,000-18,000}{18,000} \end{gathered}[/tex]
Solve.
[tex]\begin{gathered} \text{Total }Return=\frac{-7,000}{18,000}=-0.38888 \\ -0.38888\times100=-38.888\approx-38.9 \end{gathered}[/tex]
Hence, the total return on Katy's investment is -38.9%.
