Question

5. Calculate the return on investment in dollars and as a percentage for an investment that you purchase for $500 and sell for $600. (6.0 points) TIP: If you don't remember how to calculate return on investment, review the Calculating ROI pages in Section 4, Lesson 2. $-To calculate the ROI, subtract the $500 initial investment from the $600 amount you earned. %-To calculate the ROI percentage, take the ROI dollar amount and divide it by the initial investment. Then take that number and multiply it by 100 to get the percentage. ROI = $_____________ and _________%

Answer 1

The ROI is 100 dollars or 20 percent

Step-by-step explanation:

I

Answer 2

ROI = $100 and 20%

Step-by-step explanation:

Return on investment (ROI) is a performance measure used to evaluate a single investment's efficiency in generating profits or to compare the performance of one investment against similar investments in terms of their returns. It is the profit earned per dollar invested and can be calculated as follows:

Selling Price (amount earned) = $ 600

Buying Price (amount spent) = $ 500

Profit on Sale = $100

To calculate the growth in value of the investment: divide the growth value of $100 by the original investment value of $500 to obtain 20% ($100/$500)*100%