Return on Investment

Calculate ROI.

Gain: $535,000

Cost: $400,000

• 133.75%

• $535,000

• 34%

• $135,000

Calculate ROI.

Gain: $3,640

Cost: $1,880

• $3,640

• $176,000

• 94%

• 194.6%

You buy a car for $26,450. Because you now have reliable transportation, you are able to obtain a job and earn $10,860 in your first year. Calculate your return on investment for that year.

• $15,590

• -59%

• 59%

• −$15,590

A business purchases a new form of information system technology for $500,000. Because of this purchase, the company begins earning $50,000 a year. Find the ROI for the first year.

• 90%

• $450,000

• -$450,000

• -90%

A business purchases a new form of information system technology for $500,000. Because of this purchase, the company begins earning $50,000 a year. Find the ROI for the second year.

• -80%

• $400,000

• -$400,000

• 80%