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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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  1. 13 September, 08:01
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    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%
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