Invest

Investing

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Multiple Choice

To invest means....

• A person who works in a business owned by someone else

• A person who organizes and runs his or her own business

• Investing is the act of using your money or time with the hopes of generating capital gains.

Investment Earnings:

• To determine if your investment was worth it you must first determine the profit then the ROI (return on investment)

Profit Formula

• To determine the amount of profit gained from a product use the following formula

• Amount earned - Investment = PROFIT

Multiple Choice

Determine the profit of the following scenario: You invest $100 and the company earned $600

Amount earned - Investment= Profit

• $300

• $500

• $400

Multiple Choice

Determine the profit of the following scenario: You invest $1,000 and the company earned $16,000

Amount earned - Investment= Profit

• $500

• $15,000

• 160%

ROI FORMULA

• To determine the Return on Investment returned from a investment do the following formula

• Profit / Investment x 100 = ROI

Multiple Choice

Determine the ROI of the following scenario: Your profit is $800 your investment was $200

Profit / Investment x 100 = ROI

• 4

• 400%

• $1400

Investment Value

• The investment with the highest percentage is the investment that brought in the most return.

• Example:

• Company 1: You invested $800 the company earned $3,000 . The profit would be $2,200 . The ROI would be 275%.

• Company 2: You invested $400 the company earned $2,000. The profit would be $1,600. The ROI would be 400%

• You earned the most return of investment for company 2

Multiple Choice

Company 1: You invested $300 the company earned $1000 . Determine the ROI

• $233

• 700%

• 233%

Multiple Choice

Company 2: You invested $800 the company earned $1000 . Determine the ROI

• 25%

• 250%

• $25

Multiple Choice

Which investment did you earn the highest ROI?

• Company 1

• Company 2