Calculating Return on Investment

Front

What is the formula for calculating the return on investment (ROI) percentage?

Back

Front

If an investment of $5000 yields a net profit of $1000, what is the ROI percentage?

Back

Front

Calculate the simple return on investment if the initial investment is $5000 and the final value is $5500.

Back

Front

An investor made a total investment of $2000 and received a return of $2400. What is the ROI percentage?

Back

Front

An investment of $7500 results in a return of $9000. What is the ROI percentage?

Back

Front

Define Return on Investment (ROI).

Back

ROI is a financial metric used to evaluate the profitability of an investment, calculated as the ratio of net profit to the cost of the investment.

Front

What does a negative ROI indicate?

Back

A negative ROI indicates that the investment has resulted in a loss rather than a profit.

Front

What is the significance of ROI in investment decisions?

Back

ROI helps investors assess the efficiency of an investment and compare it with other investment opportunities.

Front

How do you interpret an ROI of 15%?

Back

An ROI of 15% means that for every dollar invested, there is a profit of 15 cents.

Front

What is the difference between gross ROI and net ROI?

Back

Gross ROI does not account for costs associated with the investment, while net ROI subtracts these costs from the total return.