Question

Mrs. Green invested $10,000 in mutual fund for a period of 6 years. At the end of 6 years, she received a total amount of $25,000. Calculate the ROI and write the answer in the space provided.

Answer 1

ROI = 150

Explanation:

ROI = (25,000-10,000)/10,000 ×100=150

Answer 2

Given:
Investment: 10,000
term of investment: 6 years
total investment after 6 years: 25,000

Return on investment is calculated by dividing the net profit by the total investment multiplied by 100%.

25,000 - 10,000 = 15,000. This is the net profit.

ROI = (15,000 / 10,000) * 100% = 1.5 * 100% = 150%

The return on investment is 150%.

Total investment does not limit itself to the initial investment, it also includes any additional investment that resulted to having the gross amount earned after 6 years.