Return on Investment Concepts

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

Andy earned $300 on a $1000 investment. What is his current ROI (return on investment)?

• 2%

• 3%

• -30%

The profit or income generated by saving and investing is known as

• Debt

• Inflation

• Return

• Risk

Which of the following scenarios would likely result in a higher ROI?

• High initial investment with low returns.

• Low initial investment with high returns.

• High initial investment with high returns.

• Low initial investment with low returns.

Which investment option is better if Investment A has an ROI of 15% and Investment B has an ROI of 10%?

• Investment A

• Investment B

• Both are equally good

• Cannot be determined

Calculate ROI.

Gain: $3,640

Cost: $1,880

• $3,640

• $176,000

• 94%

• 194.6%

What does ROI stand for?

• Return on Investment

• Rate of Investment

• Return on Income

• Rate of Interest

What is the purpose of calculating ROI?

• To determine how much money you owe

• To measure the profit or loss from an investment

• To calculate your credit score

• To find out how much you should save

What does a negative ROI indicate?

• You made a profit on your investment

• You have no profit or loss from the investment

• You lost money on your investment

• You should invest more money

What type of investments can ROI be used to evaluate?

• Only stocks and bonds

• Only real estate

• Any type of investment (stocks, real estate, business, etc.)

• Only savings accounts