Question

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

Answer 1

75%

Explanation:

Answer 2

ROI is 75%.

Given:
Cost of Investment = 20,000
Gain on Investment = 35,000

The Return on Investment measures the amount of return on an investment relative to the cost of the investment. It is expressed in percentage form.

ROI = (Gain on Investment - Cost of Investment) ÷ Cost of Investment
= (35,000 - 20,000) / 20,000
= 15,000 / 20,000
= 0.75 x 100% = 75%