Question

The original cost of Sam’s investment is $10,000. After liquidating the investment, Sam calculated his real return to be $10,700. What is the return on investment (ROI)?

The ROI on Sam’s investment is
__%

Answer 1

Return on investment (ROI) = 7%

Explanation:

Given:

Amount invested = $10,000

Total amount get (refund) = $10,700

Find:

Return on investment (ROI) = ?

Computation:

Amount Return = Total amount get (refund) - Amount invested

Amount Return = $10,700 - $10,000

Amount Return = $700

`Return\ on\ investment \ (ROI) = [(Amount\ Return)/(Amount\ invested) ]100\\\\Return\ on\ investment \ (ROI) = [(700)/(10,000) ]100 \\\\ Return\ on\ investment \ (ROI) =7`

Return on investment (ROI) = 7%