Determine net combined return


I need help reviewing the problem below...

Over the past year, the Dollar has depreciated about 10% against the Euro. A year ago you took out a home equity loan in the U.S. at an interest rate of 8% and you invested the money in a German mutual fund that paid a 5% Euro return.

What net combined return did you earn on all of these transactions over the year?

 

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Finance Basics: Determine net combined return
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