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

Question

Mathematics

Karla Anderson

13 September, 04:07

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

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Gracie Figueroa · Answer 1

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%