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8 June, 19:27

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.

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  1. 8 June, 20:40
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    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.
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