217k views
4 votes
A company made a profit of $75,000 over a period of 6 years on an initial investment of $15,000. What is its annualized ROI? 26% 66.67% 83.33%

User Mazorati
by
6.3k points

2 Answers

7 votes
ROI = $12,500/$15,000 or 83.3%
User Bhushan Kawadkar
by
6.1k points
4 votes
Annual ROI is approximately 83.3%

Find annual profit: $75,000/6 = $12,500

ROI = Annual Profit/ initial investment
ROI = $12,500/$15,000 or 83.3%
User TARJU
by
6.5k points