Question

Calculate the ROI, given the following: Andrew invested $20,000 in mutual funds and received a sum of $35,000 at the end of the investment period.

Answer 1

ROI = 75%

Explanation:

Andrew invested $20,000 in mutual funds and received a sum of $35,000 at the end of the investment period.

His gain from mutual fund = $35,000 - $20,000 = $15,000.

Return of Investment (ROI) = (Gain Amount / Investment Amount) *100

ROI = ($15,000 / $20,000) *100

ROI = 0.75 *100

ROI = 75%

Hence, his ROI from mutual fund was 75% of his investment.

Answer 2

we are given with an initial deposit of $20,000 and a future worth of $35,000. In this case, we are asked for the return of income (ROI) of the investment. in this case, we assume the number of years equal to 1. hence,

$35,000 = $20,000* (1+i) ^1
i or ROI then is equal to 0.75